What 529s Cover

Save for a variety of flexible uses beyond tuition

529 plans can be used for a variety of different qualified education expenses at a diverse range of eligible schools across the world.

529 plans are not just for college

Higher education

529 plans can be used at any eligible school in the U.S. or even the world. This includes graduate schools, community colleges, technical/vocational schools, or even study abroad programs.

K-12 education

529 plans offer expanded flexibility for families with K–12 students. In addition to up to $10,000 per year in tuition expenses, for withdrawals made after July 4, 2025, funds can also be used tax-free for curriculum, books, tutoring, online courses, testing fees, dual enrollment and certain educational therapies. Some states may still treat K–12 withdrawals as non-qualified, so check your state’s rules.

Apprenticeships and Credentials

529 accounts can be used to pay for expenses such as fees, books, supplies and equipment required for registered apprenticeship programs and, for withdrawals made after July 4, 2025, recognized postsecondary (post-high school) credential programs. This includes costs related to licensing exams, continuing education and certification programs that meet federal or state standards.

Save for more than just tuition

Tuition can be expensive, but it’s only part of the total cost. You can also save in a 529 account to pay for a wide variety of other expenses. Along with the expenses listed below, you may also use your account to pay for off-campus housing, special needs services, and up to $10,000 in qualified student loan repayment.

Tuition and fees

Room

Textbooks

Computers and equipment

Meal plans

Student loan repayment

Expanding on educational expenses

Article | 2 minutes

Looking to Pay for Study Abroad? A 529 Plan Can Help

Article | 3 minutes

What Are Qualified Expenses?

Video, Article | 2 minutes

4 Ways to Use a 529 Account

Article | 3 minutes

Saving for K-12 Education with Invest529

Qualified expenses FAQs

Is there a penalty for a non-qualified education expense?

Withdrawals from a 529 account that are used for non-qualified education expenses are taxable as ordinary income and, unless an exception applies, are subject to a federal penalty of 10 percent. Exceptions to the non-qualified withdrawal rules include the investment earnings of a withdrawal made due to the student’s death, disability or receipt of a scholarship. 

Each state’s tax rules may differ in its treatment of income from a 529 plan, so it’s important to check with your state or consult a tax advisor regarding specific tax consequences taking withdrawals.

What is considered a non-qualified education expense?

A 529 plan is meant to cover costs required for enrollment and attendance at a school. Things like college application or testing fees, transportation/travel costs, health insurance, extracurricular activity fees, and room & board (if enrolled on a less than half-time basis) are considered non-qualified education expenses.

For K-12, home schooling expenses are not covered by 529 plans.

How do I know if an expense is “qualified”?

The Internal Revenue Code (Section 529), which governs college savings plans, outlines Qualified Higher Education Expenses. Generally, qualified higher education expenses include costs required for the enrollment or attendance at a school (tuition, fees, room and board, books, computers). If you are unsure about a particular expense, it’s best to contact a tax professional or contact your 529 plan administrator.

How do I check the eligibility of my school or apprenticeship program?

Here’s how you can determine whether your school or apprenticeship is covered by a 529 plan:

Higher Education: Most colleges, universities or vocational schools in the U.S. or abroad that participate in federal financial aid programs are considered eligible educational institutions. This includes schools offering undergraduate and graduate degrees, and other various certification or training. You can check the eligibility of a specific school online at Studentaid.gov/fafsa-app/FSCsearch or contact the school directly.

Apprenticeships: To be covered by a 529 plan, the trade or vocational school must have a federal school code or accept federal financial aid, while the program should be a Registered Apprenticeship Program through the Department of Labor and Industry. You should check with your program sponsor about the program eligibility.

K-12 Education: Most public, private or religious K-12 tuition expenses are covered by 529 plans. If you have questions about your school, check with your state’s Department of Education.