529 plan payouts off-campus
Q. Can a Section 529 account for my child be used to pay for off-campus housing? B.P., Schenectady, N.Y.
A. Yes, but certain requirements must be met. First, your child must be enrolled as a full-time student. Second, you can’t spend more than the room-and-board allowance authorized by the school. This is the figure used in the cost of attendance for financial aid purposes. You can obtain it from the college’s website or its financial aid office. Note that the cost of food, as well as routine supplies, may also count toward the allowance (e.g., if the off-campus monthly rent is less than the monthly figure cited by the school).
Tip: Any excess amount is treated as a taxable distribution from a 529 plan.
Tax success for achievement awards
Q. Are employee awards for retirement taxable under the new tax law? J.D.T., Boston
A. No, but the Tax Cuts and Jobs Act (TCJA) does clarify certain rul...(register to read more)
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