What Can You Buy With 529 Distributions?
What Can You Buy With 529 Distributions?
WHAT CAN YOU BUY WITH 529 DISTRIBUTIONS?
A 529 college savings plan is a tax-advantaged way to save for education expenses, and it’s not just limited to college anymore. Originally designed to help families save for higher education, these plans can now be used for a wider range of educational expenses, including K-12 tuition, private and religious schools, vocational schools, and even some international institutions. The plan offers flexibility, allowing individuals to use the funds for various educational purposes beyond traditional four-year college programs.
The primary advantage of a 529 plan is its tax benefits. Earnings on the funds grow tax-deferred, and withdrawals used for qualified education expenses are tax-free. However, it’s important to note that each state may treat 529 plan contributions differently, offering different state tax deductions or credits. Additionally, the fees and expenses associated with each 529 plan can vary, so …
