How Do You Pay For College With 529?

Once the transfer is made from the 529 account, use your preferred payment method to pay your qualified higher education expenses directly with the college or university.

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Pay college bills online by enrolling now in Fidelity BillPay® for 529 accounts.

What college expenses can be paid from a 529 plan?

Qualified 529 plan expenses

With a 529 college savings plan, investments grow tax-deferred and are not taxed when withdrawn to pay for qualified higher education expenses, including tuition, fees, textbooks, supplies and equipment required for enrollment, special needs services and, in some cases, room and board costs.

How do I get money from 529?

To take a 529 withdrawal for qualified expenses:

  • Visit Accounts & Trade, then select Transfer and your 529 plan.
  • You can choose where to transfer your money, such as to another Fidelity account or a bank account on file.
  • You can withdraw a portion of the funds or the full amount.

What are eligible 529 Expenses?

Qualified 529 plan expenses include costs required for the enrollment or attendance at a college, university or other eligible post-secondary educational institution.

What happens if you don’t use 529 money for college?

If assets in a 529 are used for something other than qualified education expenses, you’ll have to pay both federal income taxes and a 10% penalty on the earnings. (An interesting side note is that if the beneficiary gets a full scholarship to college, the penalty for taking the cash is waived.)