Qualified Distributions
This type of distribution is used to pay for the designated beneficiary's qualified higher education expenses at an eligible higher educational institution.* As defined by federal law, qualified higher education expenses include:
- Tuition, fees, books, supplies and equipment (including computers) required for enrollment or attendance of a designated beneficiary at an eligible educational institution.
- The cost of room and board for a designated beneficiary enrolled at least half time. In general, reasonable room and board should not exceed:
- The allowance for room and board included in the cost of attendance by the eligible educational institution; or
- The actual amount charged, if the designated beneficiary is residing in housing owned or operated by the eligible educational institution.
- Repayment of qualified student loans up to the maximum lifetime limit of $10,000. This includes amounts of repaid principal and interest on any qualified student loan of either a 529 plan designated beneficiary or a sibling of the designated beneficiary.**
- K-12 tuition up to $10,000 per year, per child***
- Apprenticeship program registered and certified with the Secretary of Labor under the National Apprenticeship Act. Includes expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in a program.**