<p>The stimulus package included a change to 529 account rules for 2009 and 2010 tax years allowing computer purchases with 529 account money. Has anyone heard any more about that? As I was completing a 529 withdrawal form for some $$ from my daughter's room and board expenses I noticed the form still says that computers are not an allowed expense unless they are required by her school. I *think *the form has not been updated since last year, but am curious if there are any detailed rules out there yet. Both my kids are in need of new computers and the only way we could afford it is by using funds from their 529 accounts, but I don't want to risk getting hit with taxes if there is some part of the new rule I am unaware of.</p>
<p>swimcat: scroll down to qualified tuition program…it’s there</p>
<p>[CollegePlan101</a> 529 Plan](<a href=“http://collegeplan101.com/blog/?cat=39]CollegePlan101”>http://collegeplan101.com/blog/?cat=39)</p>
<p>Just call up your 529 provider and ask how to account for that…</p>
<p>Absolutely covered:</p>
<p>[529</a> News](<a href=“529 News - Economic stimulus bill adds computer expenses as 529-eligible”>http://www.savingforcollege.com/529_news/index.php?page=plan_news&plan_news_id=966)</p>
<p>I’d call your plan administrator and validate with them (and ask them to update their forms.)</p>
<p>Here is the Utah newsletter that shows that it is covered by their plan: (Page 2)</p>
<p>[? ?](<a href=“http://74.125.155.132/custom?q=cache:6kwF1OQuqwkJ:www.uesp.org/pdfs/Newsletter/UESP_Newsletter.pdf+computer&cd=5&hl=en&ct=clnk&gl=us&client=google-coop-np”>http://74.125.155.132/custom?q=cache:6kwF1OQuqwkJ:www.uesp.org/pdfs/Newsletter/UESP_Newsletter.pdf+computer&cd=5&hl=en&ct=clnk&gl=us&client=google-coop-np</a>)</p>
<p>P.S. The link ? ? does go to the Utah site…</p>
<p>Thanks. I have seen the information that they are allowed expenses but was just worried their might be some additional rules that I was unaware of. I guess I would like to see the actual IRS rules but they probably won’t be published until late 2009. I am probably just being a worrywart.</p>
<p>Thanks for the Utah link. Our State site has nothing about it at all (though I thought it did a couple of months ago).</p>
<p>I think that the original writers and Congress purposely left the exact 529 “expenses” a bit vague. A little common sense is needed. </p>
<p>When I was in HS and college, a typewriter wasn’t required, but turn in a paper that wasn’t typed and see if it got accepted. </p>
<p>I imagine, today, that it is extremely difficult to turn in a “paper” in, *.doc format, without a computer or internet access. Both are not specifically mentioned, but try to submit an essay in hard paper form, and see if it gets accepted. </p>
<p>I wouldn’t want to be the IRS agent or administration that would decline a computer purchase. :)</p>