<p>My dad dropped out of school and it is really messing with our finances, we didn't get any of the tuition refunded and are on the hook through the summer for her off campus housing. We can no longer use her 529 funds and are having to find the money to meet these costs. My question is am I allowed to take a withdrawal to pay us back for last semester before she dropped out? This would help a bit...</p>
<p>Daughter not dad dropped out</p>
<p>I don’t see why you can’t take a withdrawal to pay for the costs. You had to pay those costs, so you should be able to be reimbursed from the 529 for whatever costs are payable with 529 funds. I’m not an authority on 529’s … I just think that logically, this makes sense.</p>
<p>Isn’t the general wording for 529 withdrawals “qualified educational expenses?” I would imagine that this would qualify, but I am not an expert either. You would just need to make sure there wasn’t any issues with the date of the charges. </p>