Uncertain what some terms mean? Find explanations of key terms here.
- Individual account. Individual Account Agreement (form 100)
- Institutional account. Institutional Account Agreement (form 102)
- UGMA/UTMA account. UGMA/UTMA Account Agreement (form 104)
- Scholarship account. Scholarship Account Agreement (form 106)
Any accredited college, university, or trade school in the United States or abroad that participates in federal financial aid programs for students. Find a list of participating schools, updated quarterly, at the U.S. Department of Education federal student aid site .
Public, private, and religious kindergarten through 12th grade schools.
A member of the beneficiary’s family can be the beneficiary’s:
- Father or mother
- Brother or sister
- Legally adopted child
- Stepfather or stepmother
- Stepson or stepdaughter
- Brother-in-law or sister-in-law
- Son-in-law or daughter-in-law
- Father-in-law or mother-in-law
- Son or daughter of a brother or sister
- Beneficiary’s spouse
- Spouse of any of any people mentioned above
- First cousin
Expenses qualified for tax-free account withdrawals include:
- Tuition, fees, books, supplies, and equipment required for a beneficiary to enroll or attend an eligible educational institution, such as a college, university, or vocational school.
- Computers, peripheral equipment, educational software, and internet access and related services when used primarily by the beneficiary while enrolled at an eligible educational institution.
- Room and board for a beneficiary who is enrolled at least half time at an eligible educational institution. The expense may not exceed the cost determined by the eligible educational institution for on-campus room and board.
- Expenses for services for a special needs beneficiary to enroll and attend an eligible educational institution.
- K-12 tuition expenses at public, private, or religious schools. Payments for K-12 tuition expenses cannot exceed a combined total of $10,000 per calendar year per beneficiary from all qualified tuition programs, including my529.
- Payments on qualified education loans. This includes amounts paid—as principal or interest—on any qualified education loan of the beneficiary, or a sibling of the designated beneficiary. Withdrawals for loan repayments are limited to a total of $10,000 from all 529 accounts. Distributions to a sibling also have a $10,000 limit. However, the account owner cannot use 529 funds to repay a qualified loan and then use those same 529 funds to claim a tax deduction for student loan interest.
- Costs for registered apprenticeships, including fees, books, supplies, and equipment required for participation. To qualify, apprenticeship programs must be registered and certified with the Secretary of Labor under Section 1 of the National Apprenticeship Act.