Timing of claiming 529 for off campus R&B

[dctl]

For the term starting Jan. 2019, we paid tuition and R&B in Dec. 2018 because the college bill was sent and required to be paid in 2018. So we claimed 529 for both in 2018.

For the term starting Jan. 2020, my grandson intends to live off campus. The tuition will be paid in Dec. 2019 and so will the claim of 529 for tuition. The R&B (rent and food) will actually be incurred in 2020. So should the R&B portion be claimed from 529 in 2020?

[dcandmc]

For the term starting Jan. 2019, we paid tuition and R&B in Dec. 2018 because the college bill was sent and required to be paid in 2018. So we claimed 529 for both in 2018.

For the term starting Jan. 2020, my grandson intends to live off campus. The tuition will be paid in Dec. 2019 and so will the claim of 529 for tuition. The R&B (rent and food) will actually be incurred in 2020. So should the R&B portion be claimed from 529 in 2020?

For 529 timing purposes, it doesn't so much matter when the qualified expense is billed or when the service is incurred/used. What matters is when the bill for the qualified expense or service is paid. The distribution from a 529 account needs to be taken in the same year that the matching qualified expense is paid.

[dctl]

Living off campus, almost all the expenses for the term starting Jan. 2020 will be paid in 2020. Maybe the first month's rent have to paid in 2019. So we should claim one month's rent in 2019 and the rest in 2020?

[dcandmc]

Take the 529 distribution in the same year that the qualified expense the distribution is meant to cover or reimburse is paid. It's not any more complicated than that.