How can ‘extra’ 529 funds be used?
Have you heard the myth that money in 529 accounts can only be used for college tuition? We have too, so we want to clear up any confusion. Money in 529 accounts can also be used for qualified education expenses, such as room & board (as long as the student is enrolled at least half time), books, computers, and internet, in addition to technical college, registered apprenticeships, and even K-12 tuition.
What if your student graduates with some money leftover? No problem! You have more options than ever, with the newest option to roll money into a Roth IRA under certain circumstances. Younger sibling heading to college soon? Have you been thinking about going back to school? You can also transfer funds to another eligible family member—including yourself! You can even maintain the account as the first deposits into a future grandchild’s education savings account. Considering the many ways to use and transfer funds, these are the kind of leftovers you want!
Important Legal Notice
Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing. For a copy of the Program Description, call 800.418.2551 or visit my529.org.
