My son will be a freshman next month, and we want to start using his 529 account. What costs are considered qualified expenses? I first withdrawal and then pay the university, or need to transfer money directly from his 529 to the university?
529 you can use the tuition money, tax-free room and board. If your son live off campus, you can withdraw the subsidy to accommodation, financial assistance is determined by the cost of attending the purpose of (financial aid office can give you a few) University.
Savingforcollege.com said Joe Hurley, or if you need to attend their school books, equipment and supplies qualifications. Computer does not meet, unless specifically requested Cole EGE your students have a (computer qualify for the 2009 and 2010 tax-free withdrawals 529 times, but the provision does not extend). For a complete list of eligible expenses, see IRS Publication 970, “education tax benefits.” Qualified tuition program section
You can usually by phone, mail or online request the withdrawal (of 529 specific changes administrator). Pioneer, for example, will send the money by check or electronic transfer to a bank you specify, or checks can be sent to the beneficiary or educational institutions (schools need to provide the name, mailing address and your children if the money is sent directly to the school student identification number). Give yourself plenty of time. By sending a check for possible withdrawal takes seven to ten working days to reach the destination; electron transfer to the account holder’s bank may take three to five working days.
Does the cost of your plan administrator if evidence is needed, is a qualified withdrawal. Pioneer is not in those. Case Either way, you should keep your son or receipt of payment, the IRS issues for future use. The plan will result in the withdrawal was made a year after the calendar year in January IRS Form 1099-Q, or send it to the account owner or beneficiary, depending on who received the evacuation.