Today’s fantastic family finance article is:
Kudos to you for wisely putting funds in a 529 for your kid’s college education! Smart move.
Just make sure you’re equally smart when it comes to pulling the funds out. That means knowing the rules about which institutions and expenses qualify for withdrawals. Use 529 funds incorrectly, and you’ll face penalties and tax liabilities.
Today’s article does a nice job of summarizing the rules in plain English. Some highlights: computers, Internet access, and software (except games!) are now qualified expenses. Travel expenses to and from college are not. Off campus room and board? That gets a bit trickier.
Brush up on the latest rules here.
Get tomorrow’s tip here.