My child is the beneficiary of a 529 plan. Can he use the 529 funds for vocational school?
Answer
Section 529 funds can be used for some vocational schools. A vocational school, like a college, graduate school, or foreign university, may be considered an "eligible educational institution" if approved by the U.S. Department of Education (DOE). An approved vocational school will appear on a list of schools maintained by the DOE (available on the DOE website).
A word of warning, though. States aren't required to follow federal eligibility guidelines, and some may prohibit the use of 529 funds for vocational school. Check with the administrator of any 529 plan you're considering to be sure.
GE 37790 (03/07)
If you are investing in a 529 plan outside of your state of residence, you may lose available state tax benefits. Make sure you understand your state tax laws to get the most from your plan.
529 plans are subject to enrollment, maintenance, administration/management fees and expenses. 529 plans are subject to fluctuation in value and market rise, including loss of principal.
Investors should consider the investment objectives, risks, charges, and expenses of 529 plans carefully before purchasing. More information about 529 plans can be found in the issuer's official statement. Please read the official statement carefully before investing.
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