529 Plan and College Savings

Archive for July, 2005

Question: Can money in a 529 savings plan be used for private elementary school?

Or is it only restricted to college and above?

Answer: Max:

Only college and above.

Money from a 529 Plan can be used for any qualified educational expense at any accredited college, university or technical school in the US and in some foreign countries. Qualified educational expenses include tuition, fees, books, and any equipment and supplies that are required of all students in the student’s program of study.

A distribution from a 529 that is used for any other purpose is subject to both taxes and an additional 10% early distribution penalty, unless certain conditions are met (e.g. the designated beneficiary dies, etc.).

I hope that helps – good luck!

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