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I have a full time student who lives on campus, and purchases meals outside the meal plan. Can I use the 529 withdrawal for grocery purchases without a penalty?

 
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5 Replies

I have a full time student who lives on campus, and purchases meals outside the meal plan. Can I use the 529 withdrawal for grocery purchases without a penalty?

In regard to the allowable Qualified Education Expense that is payable from a 529 plan - you asked if your meals expense was allowable given that you are a resident student but do not participate in the educational institutions board (meal) plan:

"Room and Board – If the student is attending college half-time or more and the room and board are paid directly to the college or university this is a qualified expense.

"If room and board are to be paid to a landlord and grocery store, the budget is set by the school and is available to students who are attending half-time or greater. "

In other words, the maximum allowable expense for the combination of room and board, even if meals are not part of the meal plan, is that amount set by the school if you were using both room and board from the school.


If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3

- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.

I have a full time student who lives on campus, and purchases meals outside the meal plan. Can I use the 529 withdrawal for grocery purchases without a penalty?

@Scruffy_Curmudgeon  Where did you find what you have in quotes?

I have a full time student who lives on campus, and purchases meals outside the meal plan. Can I use the 529 withdrawal for grocery purchases without a penalty?

A number of sites but simplest statement is here
<a rel="nofollow" target="_blank" href="https://thecollegeinvestor.com/18450/qualified-expenses-529-plan/">https://thecollegeinvestor.com/18...>

IRS also has a statement but it takes some reading to really get to this point.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67


NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3

- Just donating my time
**Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.

I have a full time student who lives on campus, and purchases meals outside the meal plan. Can I use the 529 withdrawal for grocery purchases without a penalty?

Qualified expenses that would be considered eligible to use a 529 plan for are:

-Tuition and required enrollment fees. 

• Books, supplies, equipment. 

• Room and board for at least half-time students. •

 Expenses for special needs services. 

• K–12 expenses


Please see the link below for additional details on 529 plans


https://turbotax.intuit.com/tax-tips/college-and-education/information-on-529-plans/L0vrZiFuC

I have a full time student who lives on campus, and purchases meals outside the meal plan. Can I use the 529 withdrawal for grocery purchases without a penalty?

I need more clarification for what is room and board? Does this have to be paid to the university? Can I purchase meals outside of the university with plan funds?

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