Can I Use 529 Funds To Buy A Computer

Fortunately 529 withdrawals can cover the cost of the purchase of any computer technology related equipment andor related services such as internet access according to the irs. Many parents might not realize it but congress passed legislation in late december that made permanent a rule to treat.

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can i use 529 funds to buy a computer

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The purchase of computer or peripheral equipment computer software or internet access and related services if it is to be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution.

Can i use 529 funds to buy a computer. That is no longer the case. Computer software used for educational purposes is also covered. 529 qualified expenses include.

The allowance for room and board included in the schools cost of attendance for federal financial aid calculations. 529 withdrawals reporting and redepositing. Such equipment includes printers but not equipment that is intended mainly for entertainment purposes.

Tuition and fees are considered required expenses and are allowed but when it comes to room and board the costs cant exceed the greater of the following 2 amounts. This does not include expenses for computer software for sports. Young boozer state treasurer of alabama and chair of the college savings plan.

For instance if youre studying to be a graphic designer and need design or editing software funds from a 529 plan can cover those purchases says joshua andrews a certified financial planner. When it comes to computer purchases computer equipment or software used for gaming or hobbies would not qualify. While funds from a 529 account can be used to pay for expenses required for college not all expenses qualify.

To maximize this credit you could invest at least 5000 in a 529 plan each year receive 1000 in tax benefits from the state and turn around and use those funds for private school tuition. Assuming that condition is satisfied a replacement computer can be purchased with 529 funds and still be qualified. The irs does not place a limit on how many times one can purchase a computer using 529 funds.

Previously you could use money from a 529 plan to buy a computer only if it was required by the college for attendance. Savings can indeed be used to buy a computer or. The only condition is that the computer is primarily used by the beneficiary while enrolled in school.

529 passed the house in february that would make computers a permanent qualified expenses but this has not yet become a law. Maybe you can use money in that 529 college savings plan to cover the bill.

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