A 529 plan may be used to pay for the beneficiary’s graduate school or professional school education. A distribution to pay for qualified higher education expenses at a graduate school or professional school will be considered a qualified distribution and therefore tax-free.Read More
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There are six steps that can improve your odds of being approved for a refinance of your private student loans, sometimes called a private consolidation loan. These include maintaining stable employment, ensuring sufficient income to repay the debt, keeping a low debt-to-income ratio, having a very good or excellent credit score, getting a creditworthy cosigner and shopping around for the best interest rates and fees.Read more
You cannot use a 529 plan to pay for travel and transportation costs. The earnings portion of a distribution from a 529 that is used to pay for travel and transportation expenses will be considered a non-qualified distribution. Non-qualified distributions are taxable at the beneficiary’s rate, plus a 10% tax penalty, as well as recapture of state income tax benefits attributable to the distribution.Read more
Looking for ways to boost college savings? Families can earn rewards of 7% cash back or more by booking travel plans through the Upromise shopping portal. Earned college dollars can be automatically transferred to a linked 529 plan account.Read more
If a 529 plan distribution is used to pay for room and board, it is a tax-free qualified distribution in certain circumstances and a taxable non-qualified distribution in other circumstances. The student must be enrolled as a regular student on at least a half-time basis.Read more
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Q&A with 529 Guru: Joe Hurley
Specialist Joe Hurley answers your questions.
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