Can 529 Plan money be used for initial deposit

Discussion in 'Military Academy - USMA' started by sweettooth, Feb 20, 2009.

  1. sweettooth

    sweettooth Parent

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    Has anyone information on the use of 529 plan money to fund the initial deposit. I read the qualified uses and I think uniforms and possibly books might be eligible.
     
  2. goarmy

    goarmy New Member

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    529 money for initial deposit

    We used 529 funds two years ago for our son's deposit. I think that you would need to review your 529 documents closely- ours is through Virginia- and has this wording:

    Qualified higher education expenses include tuition, all mandatory fees, room and board costs, textbooks, supplies and computers required for attendance or enrollment, and special needs services.

    We interpreted that as allowing us to use the 529 funds for the deposit. No questions from either the fund or the IRS to date.
     
  3. sweettooth

    sweettooth Parent

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    Thanks. That's how I interpreted the Qualified expense language.
     

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