Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
How to Avoid the 529 Plan Room and Board Penalty Trap
Episode 104 of The College Savings Podcast uncovers a costly mistake families make when paying for room and board with 529 funds. Lucas and Luna explain the 'qualified housing' rule, the receipt trap, and how the off-campus housing allowance must match the college's official cost of attendance (COA). They walk through a real case: a family in Texas who withdrew $18,000 for an off-campus apartment, only to discover at tax time that $3,000 was non-qualified — triggering a 10% penalty plus income tax. The hosts share practical tips: always check the COA on your student's…
The skinny
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