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posted Jun 5, 2024 5:49:24 PM

529 Qualified Expenses Qeustion

I purchased a condominium for my dependent college student to live in while registered as a full-time student 800 miles from home. I realize that I can't use 529 funds to pay the mortgage on this property. Can I use 529 funds to pay utilities (electric, water, sewer, etc.) at the condominium while he lives there? Can I use 529 funds to pay condominium monthly HOA fees while he lives there?

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2 Replies
Level 15
Jun 5, 2024 5:58:47 PM

You must use whatever values your school publishes in their cost of attendance (COA) documents as your maximum.

Level 15
Jun 6, 2024 4:28:10 AM

Off campus room and board [housing & food] are eligible expenses for a 529 plan distribution. You CAN count  mortgage interest (but not principle payments), as well as insurance, real estate tax, utilities and HOA fees.

 

But, the amount you can claim is limited to the lesser of what you actually pay or the school's "allowance for cost of attendance" (usually, what on campus students pay for R&B ).