College Room and board and 529 plans

[aj485]

@XMFBigFrog

Is room and board a qualified higher education expense when it comes to 529 plan withdrawals?

Yes.

@XMFBigFrog

Direction 1: “yes”.
Link: https://www.irs.gov/pub/irs-drop/n-18-58.pdf

Relevant quote: “QHEEs also include reasonable costs for room and board for eligible students as defined in § 25A(b)(3) (generally, those who are enrolled at least half-time).”

This is the citation that is relevant to 529 plans, since the title of the document you cited is Guidance on Recontributions, Rollovers and Qualified Higher Education Expenses under Section 529

@XMFBigFrog

Direction 2: “no”.
Link: https://www.irs.gov/credits-deductions/individuals/qualified-ed-expenses

Relevant quote: “Expenses that Do Not Qualify

Even if you pay the following expenses to enroll or attend the school, the following are not qualified education expenses:

• Room and board”

This citation is specific to tax credits (American Opportunity Credit and Lifetime Learning Credit). In fact, in this citation, below where you took your quote from, it specifically says that if you’ve used 529 (i.e. tax-free) funds to pay for the expenses, they aren’t eligible for the credits, since there is no double dipping:

### Expenses Cannot Be Paid with Tax-Free Funds

You cannot claim a credit for education expenses paid with tax-free funds. You must reduce the amount of expenses paid with tax-free grants, scholarships and fellowships and other tax-free education help.

AJ