Reference
The tables you'll come back to.
Who counts as family, what a 529 will and won't pay for, and the figures that change every year.
Qualified expenses
Can a 529 pay for that?
Every answer links to the rule it comes from.
- Private K–12 tuitionUp to $20,000 per student per year federally. Thirteen states do not allow tax-free K–12 distributions.
- Curriculum, textbooks, workbooks, and educational softwareIncluding instructional digital materials for K–12 students.
- A tutorThe tutor must be outside of your home unrelated to the student, and be a teacher or subject matter expert.
- Occupational or speech therapy for a beneficiary with disabilitiesEducational therapy by a licensed or accredited practitioner, including occupational, behavioral, physical, and speech-language therapies.
- SAT, ACT, and AP preparation course and examination feesNationally standardized achievement tests and examinations related to college admission. Preparation courses for them qualify too.
- College tuition, books, and feesAt any institution eligible to participate in US federal student aid programs, domestic or foreign.
- Room and boardOnly while the student is enrolled at least half-time, and within the school's published cost of attendance.
- A laptop, tablet, peripherals, and home internetQualified while the beneficiary is enrolled. Internet costs for the student's residence count.
- Registered apprenticeship fees, books, and equipmentThe program must be registered and certified with the Secretary of Labor under the National Apprenticeship Act.
- Professional licensing and credential renewalIncluding continuing education required to maintain a credential — for an entire career.
- Student loan principal or interestUp to $10,000 lifetime for the beneficiary, plus $10,000 for a sibling. That interest then loses the student loan interest deduction.
- Transportation, a car, or insuranceExplicitly outside qualified expenses.
- Phone plans and fitness club membershipsNot qualified expenses.
- Spring break trips and campus visitsTrips to campuses to select a school are not qualified either.
- Collateral for a loanFederal law provides that the account cannot be pledged as collateral by the owner or the beneficiary.
Appendix 3
Who counts as a "member of my family"?
As a beneficiary is named, transfers may then be made to a member of that beneficiary’s family.
Legal penalty-free transfers may be made to most relatives, including:
- The beneficiary’s father, mother, or ancestor of either.
- A child or descendant of a child (ie: a grandchild or great grandchild).
- A stepfather or stepmother, stepson or stepdaughter.
- A brother, sister, stepbrother or stepsister.
- A half-brother or half-sister.
- A brother or sister of the father or mother.
- A brother-in-law, sister-in-law, son-in-law, daughter-in-law, father-in-law or mother-in-law.
- A son or daughter of a brother or sister (niece or nephew).
- A spouse of the beneficiary or a spouse of the individuals mentioned above.
- A first cousin.
- A legally adopted child of an individual is treated as the child of that individual.
Transfers to anyone on this list are penalty-free. A transfer outside the beneficiary's family is not possible — the account has to be liquidated with a non-qualified distribution and restarted in the new name. See transfers between family members and moving extra funds.
2026 figures
Frequently Changing Numbers
Check these against the current year before acting on them.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.