Use my529 funds to support online education or recontribute a refund

Most higher education institutions have moved temporarily online, but my529 funds can still support your beneficiary’s higher education experiences.

Computers and internet access

my529 funds may be used for qualified higher education expenses such as

  • Computers
  • Software
  • Related equipment
  • Internet access

The beneficiary must use the equipment and services while they are enrolled at an eligible educational institution.

Recontribution of a refund

Account owners who receive a refund from their beneficiary’s school can recontribute the refund into their my529 account.

Please remember that the recontribution must:

  • Occur within 60 days of the refund date to avoid tax penalties
  • Not exceed the refunded amount
  • Be deposited into a 529 account for the same beneficiary

Due to the COVID-19 pandemic, the IRS has issued a special rule that permits account owners to make their recontribution by July 15, 2020, if the original due date for an account owner to make a recontribution had been on or after April 1, 2020, and before July 15, 2020.

If account owners do not recontribute the funds to a 529 account or otherwise use the refunded 529 funds for qualified higher education expenses of the beneficiary, the refund will be considered part of a nonqualified withdrawal, and will be subject to state and federal income taxes and tax penalties. Utah taxpayers who claimed a Utah state income tax credit would also face recapture of that state income tax credit.