Can You Use a 529 Plan to Buy a House?
AuthorKelsey Heath. Date:
A 529 plan is a tax-advantaged savings plan for future education costs, legally known as a “qualified tuition plan.” This savings plan can be used to pay tuition and expenses related to room and board. But can you use a 529 to buy a house? In this article, we will discuss if (and how) you can use funds from a 529 plan to buy a house, the financial consequences, and how to best use the funds for a student’s room and board. What is a 529 Plan? 529 plans are a flexible, tax-advantaged way to save for education expenses, making them an attractive option for families planning for future educational needs. Their benefits extend beyond college savings, now including options for K-12 tuition, apprenticeships, and student loan repayment. While contributions are not tax-deductible at the federal level, earnings grow tax-deferred. Withdrawals for qualified education expenses are tax-free, meaning that funds … Continued
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