529 Qualified Expenses: Full List
2025 529 plan qualified vs. non-qualified expenses
| Expense Category | Qualified? | Annual Limit | Notes |
|---|---|---|---|
| College/university tuition | Yes — fully qualified | No limit | Any Title IV-eligible institution |
| Graduate school tuition | Yes — fully qualified | No limit | Medical, law, MBA, etc. |
| Room and board (on-campus) | Yes | School’s published COA | Must be at least half-time enrolled |
| Room and board (off-campus) | Yes | Up to school’s COA housing allowance | Must be enrolled at least half-time |
| Required textbooks and course materials | Yes | Actual cost | Books required for enrolled courses |
| Computer, tablet, and software | Yes | Actual cost | If used primarily for school |
| Internet access (broadband) | Yes | Actual cost | If used primarily for school |
| Special needs services | Yes | Actual cost | Disabled students |
| K-12 private school tuition | Yes (federal) | $10,000/year | State treatment varies — check your state |
| Apprenticeship programs | Yes | Actual cost | Must be registered with Dept. of Labor |
| Student loan repayment | Yes (SECURE Act 2.0) | $10,000 lifetime per person | Principal + interest; $10K per beneficiary + $10K per sibling |
| Roth IRA rollover | Yes (SECURE Act 2.0) | $35,000 lifetime | After 15-year account age; annual Roth limits apply |
| Transportation/travel to campus | No | N/A | Not a qualified expense |
| Health insurance premiums | No | N/A | Not qualified even if required by school |
| Sorority/fraternity fees | No | N/A | Not educational expenses |
| Sports/gym memberships | No | N/A | Not qualified |
| Student activity fees (required) | Yes | Actual cost | If required for enrollment at institution |
Computers, tablets, and software are qualified 529 expenses, but only if primarily used for education. The IRS does not provide a percentage test, but the purchase must be reasonably connected to the student’s course of study. A laptop purchased during enrollment that is used for school qualifies; a gaming PC used incidentally for a class does not. Keep documentation of the educational purpose.
Room and Board: The Tricky Rules
Room and board is qualified only if the student is enrolled at least half-time. The qualified amount is limited to the school’s published Cost of Attendance (COA) housing allowance — which is typically lower than actual rent in high-cost college towns. Before paying rent with 529 funds, request your school’s COA housing allowance to ensure you don’t create non-qualified withdrawals. The COA amounts are published in the school’s financial aid office.
- On-campus housing: actual cost is automatically within the COA limit
- Off-campus housing: limited to school’s off-campus housing allowance in the published COA
- Meals: qualified up to the school’s meal plan COA allowance (not actual food spending)
- No limit on number of semesters — as long as student is enrolled at least half-time
- Part-time students (less than half-time): room and board is NOT qualified
Student Loan Repayment: The SECURE Act 2.0 Expansion
The SECURE Act 2.0 (effective 2024) allows up to $10,000 in 529 funds per beneficiary for student loan repayment (principal and interest). Additionally, $10,000 can be used for each sibling’s student loans — with a separate $10,000 limit per sibling. This provision creates meaningful flexibility: families who over-saved or whose child used loans instead of the 529 for some expenses can now direct that money toward loan payoff without the non-qualified withdrawal penalty.
Calculate How Much to Save for Your Total Qualified Costs
Enter your target school’s total COA to see your full 529 savings goal and monthly contribution plan.