Savingforcollege.com
Topic Options
#47818 - 11/05/12 03:07 AM 529 plan...Car?
mrmills023 Offline
Visitor

Registered: 11/05/12
Posts: 1
My son is a freshman in college. This semester we used the 529 to give $11,000 sent directly to the college. If next semester I decide to have the money sent directly to him as a check and have him use some to purchase a car as long as the cost of tuition for that semester and the fall 2013 semester are more or equal to the cost of the car I do not have to deal with the IRS correct? I know the car is not a qualified expense I just want to get him a car to get around by use of that money and I don't know how.

Top
#47819 - 11/05/12 11:27 AM Re: 529 plan...Car? [Re: mrmills023]
Joe Hurley Online   content

Member

Registered: 01/07/00
Posts: 2698
Loc: Pittsford, NY, USA
Generally correct, except the 2013 education expenses must be more than the amount of the 529 distribution, not necessarily more than the cost of the car.

Joe

Top
#47820 - 11/05/12 05:19 PM Re: 529 plan...Car? [Re: mrmills023]
Drew Offline
Member

Registered: 01/09/00
Posts: 2987
Loc: Easton, PA, USA
As an aside --a car is not a requirement to do well in college--both my kids made it all the way thru graduate school and learned how to ride a bus or walk.....no expensive distractions

Top


Moderator:  Joe Hurley 

All Content Copyright © 2013 Saving for College, LLC, All Rights Reserved, Terms of Use.