What is considered a qualified expense for a 529 plan?

All tuition related to college and relative fees associated with tuition are considered qualified expenses to pay with the 529 plan. They consider this to be part of what constitutes qualified higher education expenses. If the tuition at your university or college is $45,000 per year, then the entire $45,000 will constitute a qualified expense.

How much can a 529 plan contribute?

Contribution limit. 529 plans have a contribution of $16,000 per annum for qualified education expenses, and Coverdell accounts have a much smaller contribution threshold. Currently, that stands at around $2,000 per annum. Expenses. A 529 account only considers K-12 tuition as a qualified expense.

What expenses can a 529 account pay for?

Expenses. A 529 account only considers K-12 tuition as a qualified expense. However, a Coverdell account can pay for other expenses related to K-12 education. This can include things such as purchasing a computer or hiring a tutor for the child.