Can a 529 plan be used for qualified expenses?

A 529 plan is a powerful tool that parents and family members can use to save for a child’s education. Contributing to a 529 plan offers tax advantages when the money in the account is used for qualified education expenses. However, there are many 529 plan rules, specifically for 529 qualified expenses.

Can a 529 account be used for Education?

Brokerage account funds can be used for any purpose, including education, without restrictions or penalties. Section 529 plans have specific transferability rules governed by the federal tax code. The owner may transfer funds to another 529 plan once per year unless a beneficiary change is involved.

Who opens a 529 plan?

The person who opens the 529 plan account is called the account holder or the saver. The person the account is opened for is called the beneficiary or the student. The account holder and the beneficiary can be the same person. What are the differences between education savings plans and prepaid tuition plans? Education Savings Plans.