529 Pay-Me-Back -- Does timing matter?

Paying for College
1

<p>Now that D's living off-campus, I'd like to take some withdrawals from the 529 plan to reimburse me for her rent, which seems to be allowable. (Is some part of her monthly allowance for food and utilities also doable? I just transfer that into her account.) </p>

<p>But now I'm wondering if timing matters? Can I reimburse myself next year for rent expenses from 2011? Can I reimburse myself now for textbooks or tuition paid last year? (I paid more than enough in cash to stay eligible for the tax credit both in 2010 and 2011, and will again in 2012.)</p>

<p>The guy at the 529 plan didn't seem too sure on the answer, so I'd like some help from the great minds here.</p>

2

<p>The relevant IRS publication is IRS 970.</p>

<p>Living expenses for an off campus student is a qualified education expense for 529 account withdrawals. It is limited to the amount allowed for room and board on the schools COA.</p>

<p>Yes, timing matters. Expenses have to be current year’s expenses. Though i think there is a thing about expenses paid in December for the first 3 months of the following year (that might be for one of the other education benefits).</p>