What can college savings in 529 plans be used for? Treasurer Loftis answers your questions
Sunday, October 23, 2016
“First of all, if you’re using a Future Scholar College Savings Plan to save for your child’s education, you are to be commended,” said South Carolina Treasurer Curtis Loftis. “It’s never too early to start thinking about your child’s future.”
But if you’re like a lot of parents using 529 plans — or are considering a 529 plan — you may be wondering exactly what those savings can be used for.
“You can withdraw savings tax-free as long as the money is used for ‘qualified educational expenses,’” Loftis said.
According to the IRS, eligible expenses include “tuition, fees, books, supplies and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution.”
So from meal plans to lab equipment, many college expenses are deductible, Loftis said.
“It really is the smart, easy way to save for college,” he said.
To find out more about what is covered and how to keep track of expenses, read on: http://www.moneytalksnews.com/how-use-529-college-savings-and-not-run-afoul-the-irs