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Use College Savings Plan to Pay for College Preparatory Expenses

The Co-Founders of College Benefits Research Group, Steven Sirot and David Slater, were interviewed by recently for an article discussing whether 529 College Savings Plans could be used for college preparatory expenses such as SAT classes and college tours. Here’s some of what the article had to say:

“In order to use your 529 plan, it is imperative that the expenses are for eligible college institutions,” said Steven Sirot, co-founder of College Benefits Research Group (CBRG) in Roseland. “You should review the detailed description of both the eligible college institutions and expenses, which are listed in the IRS tax publication 970.”

Sirot said expenses such as room and board can get tricky because if your child will be living off campus, the expenses cannot be claimed if the cost is in excess of the school’s estimated cost for room and board.

Also be sure not to use any 529 plan funds for entertainment or any non-education expense, said David Slater, co-founder of CBRG.

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