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What Qualifies as a Higher Education Expense?
(Updated: 07/11/2017)

With fall—and the start of a new school year—just around the corner, it's important to know what qualifies as a higher education expense, so you or your college-age child can take withdrawals from 529 plans tax- and penalty-free.

Which of the following is not an example of a qualified higher education expense?

  1. College tuition
  2. The cost of a computer to be used at school
  3. Room and board
  4. Transportation costs to and from college


Answer: D.

Transportation costs to and from college (e.g., flights, gas) are not considered a qualified higher education expense, so you may not use 529 plan account savings to pay for these costs. For a complete list of qualified expenses, refer to IRS Publication 970.



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