Can i pay for my mattress from my 529? I am a full time, sophomore student and live in off campus housing.

Can i pay for my mattress from my 529? I am a full time, sophomore student and live in off campus housing.
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#1

My 529 does pay for my housing as long as it is not more than housing on campus. I know I cannot buy furniture etc. but can I pay for a mattress from Sears from my 529?


#2

Nice try, but no, 529 plan money does not cover personal items. Qualified expenses include tuition, fees, books, and room and board. A recently added benefit is that you may purchase a computer with 529 funds. You may want to save your receipts in case you need to prove that the funds were truly used for school.


#3

Unfortunately…No. 529s will cover necessary education expenses like tuition and fees and room & board owned by the college. The IRS expanded the allowed expenses to include computers and equipment or internet service and related activities while enrolled at an eligible education institution.
If you want more information regarding your 529 plan, a good source of information is IRS Publication 970, Tax Benefits for Education. Its loaded with great information, and, if you can’t sleep because you are nervous about a test the next day, read it and it will put you right out!


#4

Pam & Chris are right: 529 withdrawals are tax free only for tuition, fees, room, board, and a couple other specified items like books & a computer. Check your university bursar’s or financial aid office’s web page.; look for data on the equivalent cost for off campus room and board. You can withdraw that amount to help pay for your off-campus costs each month, with just a copy of the financial aid office’s cost estimate webpage for your tax records. Withdraw more than the Fin-Aid office’s cost estimate and the excess will probably be hit with tax plus a 10% penalty.
Good luck!


#5

The mattress is furniture, right? So you already know the correct answer. What a wonderful gift your parents, or someone gave you with this 529 plan. You are most fortunate.


#6

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