Get your free financial scoreSign inYour data on this device
Free to use. No account required.

What counts as a qualified room-and-board expense for a 529 if my student lives off campus?

Room and board is a qualified 529 expense as long as the student is enrolled at least half-time. For students living off campus or at home, the IRS caps the qualified amount at the college's official room-and-board allowance in its published cost of attendance, which the financial aid office can provide. So you can pay rent, utilities, and a reasonable food budget from the 529, but only up to that school-set figure, spending above it becomes a non-qualified withdrawal on the excess. Keep documentation of the school's allowance and your actual costs. Note that expenses like a security deposit, furniture, or transportation don't qualify. This is one of the most commonly overbilled 529 categories, so match your withdrawals to the published allowance carefully.

All questionsBrowse the articles
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures