Ah! I think I got it. I suddenly remembered when I cashed in savings bonds to open the 529. The interest earned in the savings bonds were not taxed since it went into the 529 plan for college costs. So this is kinda the same, funds from the 529, even the gains, as long as they go toward qualifying ed expenses based on the rules of the 529 plan, would not be taxable. But like a gentleman said earlier, I should keep receipts to show how the 529 funds were applied. I think that’s right.
