What are 529 Plan Qualified Expenses?

Javier SimonAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

Tax planning is one reason investors seek the help of a financial professional. Learn how SmartAsset can help you find clients looking for advice

529 Planning

A 529-qualified expense is a government-approved reason to take money out of a 529 college savings plan – meaning you won’t have to pay a tax penalty. While tuition is the main qualified expense you think of when you get a 529, there are other tangential education expenses that will also qualify. There are many, but it is important that you know exactly which expenses are qualified so you aren’t surprised by any penalties. For help with 529 plans or any other financial issues, consider working with a financial advisor.