Is travel a qualified 529 expense?

You cannot use a 529 plan to pay for travel and transportation costs. The earnings portion of a distribution from a 529 that is used to pay for travel and transportation expenses will be considered a non-qualified distribution.

Can 529 be used for commuting expenses?

Speaking of driving your car to school, none of your transportation costs are 529 eligible expenses. Whether you’re taking the bus, fueling your car or taking the train to campus, you can’t use your 529 distributions to cover the cost of your transport.

Can you use 529 for travel abroad?

529 savings plans can be used to pay for study-abroad programs but not to cover day-to-day expenses or travel costs, which can be substantial. The host school must be approved by the U.S. Department of Education to be eligible for 529 funds.

What is not covered by a 529 plan?

Avoid taking 529 withdrawals for these common expenses that don’t qualify: Insurance, sports or club activity fees, and many other types of fees that may be charged to your students but aren’t required as a condition of enrollment. A computer, unless the institution requires that students have their own.

Can I use 529 for Semester at Sea?

You can use 529 plan funds to pay for study abroad expenses if the study program at the foreign institution is eligible for credit at the student’s US home institution, and if the foreign institution is eligible for Title IV federal student aid, which can be determined by looking for the federal school code.

What happens to my 529 plan if I leave the country?

U.S. parents living in a foreign country may open a 529 plan to save for a child’s education, so long as one of the parents is a U.S. citizen. However, foreign countries do not recognize the tax-advantaged status of 529 plans. The earnings portion of a 529 plan distribution may be subject to local taxes.

How do I prove 529 expenses?

In each year you take withdrawals from a 529, the plan administrator should issue a Form 1099-Q, which reports the total distribution taken from the account in a given year, the portion of the distribution that came from earnings in the account, and the portion of the distribution that represents the original …

Can Virginia529 be used in other states?

In state, out of state, public or private … go anywhere! Use your Virginia529 account at an eligible educational institution around the country – or even the world. Plus, accounts are flexible and can fund qualified higher education expenses at public or private colleges.