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February 2, 2022
Question

529 Qualified Education Expenses - Marching Band Fees

  • February 2, 2022
  • 1 reply
  • 0 views

My son is a member of his university marching band.  Participation in the marching band is for the fall semester is voluntary but includes enrollment in a single credit course covered by tuition.  The school levied a $165 'marching band music fee' to his student account.  To make this even more interesting, they waited until 2/1/22 to levy the fee for the Fall semester (shows up on the 2021 Fall Semester account summary even though it was just levied on 2/1).

 

Since he was enrolled in a course for credit for marching band is this required fee a qualified expense which can be paid by the 529 plan? And, if it is a qualified expense, since the university did not levy the fee until 2022, even though it was for fall 2021, is it acceptable to pay it from the 529 plan in 2022?

 

 

    1 reply

    AmyC
    Employee
    February 2, 2022

    Maybe. The 529 can cover expenses in the first 3 months of 2022 since colleges often bill ahead. If this is in fact tuition or student fee, then yes. However, if it is sports fee, then it depends. Let me refer you to Qualified Expenses and also see page 52 for qualified distributions at IRS Publication 970, Tax Benefits for Education.

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