Off-campus qualified 529 "Board" expenses: only groceries, or restaurants, too?

Forum|Forum|6 years ago
February 12, 2020
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My daughter is a full-time undergrad studying abroad. We've been drawing on a 529 account to help fund her education, and this year we've been scrupulous to keep her Room and Board expenses abroad under the "average" COA figures published by her stateside university. However, I've been unable to find any official guidance on whether qualified 529 expenditures extend ONLY to groceries, or does it include coffee shops, fast food, etc., as well? I'd be grateful to receive an answer to this question, but I'd be even more grateful if someone could point me to an official publication that specifically addresses this issue. Thanks for your help.

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JohnB5677

Yes, Room & Board are considered qualified expenses for a 529 plan with some restrictions.

This link may give you some clarity: 529 Qualified Expenses.

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JustaservantAuthor

Thanks, John - I know that Room and Board are qualified expenses. My question, again, is whether qualified 529 Board expenditures extend ONLY to groceries, or can they include coffee shops, fast food, etc., as well?

JamesG1

529 funds paying 'board' expenses would probably not cover restaurants, coffee shops and fast food at would probably be capped by the school's published 'board' fee rate.

Please see a lengthly analysis here.

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