<p>For those of you who have a 529 plan and have withdrawn funds, do you simply get a distribution to yourself and then pay UVA such that the school has no awareness? The school's financial age pages and docs that I've looked at are surprisingly silent on 529s. Nothing in the FAQ, for example, which surprised me.</p>
<p>I'm talking about savings plans, not "prepaid" plans, which follow a different process.</p>
<p>I imagine you would have to contact customer service with the Virginia 529 Plan, if that is the one you use. </p>
<p>[Virginia</a> 529 - Virginia College Savings Plan | Customer Service](<a href=“http://www.virginia529.com/customerservice/index.php]Virginia”>http://www.virginia529.com/customerservice/index.php)</p>
<p>I believe you just tell the 529 you want a withdrawal, write a check to the college, and then keep copies of all receipts and statements. The 529 plan will report it to the IRS and at tax form time you will need to provide the proof that it went to a legitimate expense. </p>
<p>One of the great things about 529 is that it gives you the most flexibility in using the money. You can use it for room, board and a laptop, in addition to tuition and fees. </p>
<p>Also, most states give a state tax deduction for money put into a 529. In my state, it is possible to put money into the 529, and then a month later get a withdrawal for college expenses and still get a state tax deduction.</p>
<p>Actually, last time I checked, computers don’t qualify as a legitimate 529 expense unless the computer is REQUIRED by the school. I don’t believe UVa requires students to have a computer. Seems like a stupid rule and maybe it has changed.</p>
<p>I just checked the Virginia 529 site and confirmed that you can only use funds from the Plan to pay for a computer if the college requires the student to have a computer. Like I said, this is a stupid rule.</p>
<p>Can funds from a 529 be used to pay rent for an off-campus apartment?</p>
<p>Yes…but the amount that can be used is based on the cost of attendance used by the school for financial aid purposes.</p>
<p>Fifty-plus – In our experience, one normally makes a request to the 529 account manager to make a distribution directly to the school for the account of the student, noting whatever identifiers the school requires (usually student ID number). </p>
<p>The wrinkle with UVa is that any hard-copy check issued to pay a student account must be accompanied by a “Remittance Advice” form. This includes 529 checks. One gets this form through Quick Pay or SIS. </p>
<p>Because of this wrinkle, we have been having the 529 fund send us the check, then we have mailed it to UVa with the “Remittance Advice.” We do this, instead of sending the “Remittance Advice” directly to the 529 on advise of our financial advisor who feared the 529 might have a problem matching the form with the check. Not sure if this is necessary; I’d speak with your fund on this. NOTE: according to Student Financial Services, the “Remittance Advice” form and the official spring tuition bill will appear on Quick Pay on December 11. Right now, those amounts appear on SIS just as future expenses (or something like that).</p>
<p>
For the 2009 and 2010 tax years you can use 529 account funds to pay for a computer for the student. It was a change in the rules in the same bill that passed the American Opportunity Tax Credit. As far as I know they have not extended this beyond the 2010 tax year (yet).</p>
<p>from IRS 970 2009 rules for qualified edication plans
</p>
<p>Thanks for clarifying…the Virginia 529 folks need to update their website and publications.</p>
<p>I have a Virginia Education Savings Trust 529 plan fund for my S. Last spring, VEST sent me an authorization form to fill out and fax back to them, which permits them to send the tuition/room/board payments directly to UVA. I like this idea because it minimizes my need for record-keeping. For textbooks, I had the VEST fund send me reimbursement.</p>
<p>I also have a 529 with Fidelity, and have not inquired how to access the money–will cross that bridge when I come to it!</p>
<p>Thanks for the comments so far. I am actually in Maryland’s “College Investment Plan” (that’s where we live). Looks like for this one I should request a “distribution” to me and not mess with UVA directly.</p>
<p>With the high cost of OOS tuition, the 529’s value doesn’t cover nearly what we have left for the remaining payments, so we also have some flexibility in when to cash in, too. The market hasn’t done our 529 any favors in recent years, either!</p>
<p>[IRS</a> Higher Education Tax Tips: Computer Purchases May Be Tax-Deductible | Connecticut Watchdog](<a href=“http://ctwatchdog.com/2009/09/13/irs-higher-education-tax-tips-computer-purchases-may-be-tax-deductible]IRS”>http://ctwatchdog.com/2009/09/13/irs-higher-education-tax-tips-computer-purchases-may-be-tax-deductible)</p>
<p>As noted above, the rules for computer and technology purchases from 529 accounts were loosened up as part of 2009 stimulus bills. You can even cover broadband cost. The expectation is that all of the tax breaks and flexibility from the 2009 bill will be continued into 2011 and beyond, but Congress is going into complete gridlock.</p>