Steven Sirot and David Slater, Co-Founders, College Benefits Research Group (CBRG) were recently interviewed by Karin Price Mueller, founder of NJMoneyHelp.com and reporter for NJ.com. The article explores whether 529 plans can be used for preparatory college expenses such as SAT classes and college tours. Here’s some of what David and Steven had to say:
“In order to use your 529 plan, it is imperative that the expenses are for eligible college institutions. Expenses such as room and board can get tricky because if your child will be living off campus, the expenses cannot be claimed if the cost is in excess of the school’s estimated cost for room and board,” said Steven Sirot.
“Additionally, be sure not to use any 529 plan funds for entertainment or any non-education expense,” David Slater states. He continues, “Even if there is money left over in the 529 plan account, let it sit there in case your child plans to pursue any post-graduate studies.”