SIU

[curiousmom21]

If I use money from a 529 college savings for uniforms, medical exams etc for SIU, is that considered a QHEE?

 

[JohnPAKP65]

If I use money from a 529 college savings for uniforms, medical exams etc for SIU, is that considered a QHEE?

What are the acronyms? I know of SIU, the Seafarers International Union but not QHEE. Neither by the way are in the Acronyms area.

 

[cg66]

If I use money from a 529 college savings for uniforms, medical exams etc for SIU, is that considered a QHEE?

Are these expenses during sea year for their sea year assignment, or post graduation? If they are required expenses during sea year, I'd make sure it is documented in writing and claim as an education expense if it is for things that would have been eligible on campus. KP doesn't issue a 1098-T even for the required fees, so all we can do is submit as an expense, similar to technology expenses. There's not much guidance for handling 529's here. If it is for a post graduation job, I wouldn't think that is eligible. But the new 529 legislation for 2024 has a nice new feature that allows 529 rollovers to a Roth IRA for the beneficiary, (up to the max annual Roth contribution amount), so maybe that's an appealing option. Lots more options once it is in a Roth.

 

[cg66]

What are the acronyms? I know of SIU, the Seafarers International Union but not QHEE. Neither by the way are in the Acronyms area.

QHEE = qualified higher education expense. Withdrawals from a college savings account (such as 529) are treated differently for taxation based on whether they are 'qualified' or 'unqualified'. You generally want it to be qualified.
Since KP is a service academy and also considered a scholarship, in the worst case you can get the money out of the 529 and just pay the regular taxes (without having a penalty). Though I personally think the new Roth conversion feature is a lot more attractive vs doing that. What was the point of saving it in a restricted college account to only have to pay taxes anyway.

 

[Waiting and Watching]

If I use money from a 529 college savings for uniforms, medical exams etc for SIU, is that considered a QHEE?

I'm not sure if this is what you are asking - but the first year, there are significant (for our family) costs that qualify at QHEE - The required technology package, plebe kit, and laundry all qualify.

 

[Boymomof3]

I'm not sure if this is what you are asking - but the first year, there are significant (for our family) costs that qualify at QHEE - The required technology package, plebe kit, and laundry all qualify.

Thank you for posting this info! Even if DS doesn’t get into USMMA Plans 1A include the other Maritime academies also w/ hefty upfront costs. I was wondering if we could use his 529 $$ for this. We may decide to pay out of pocket (save his 529 $ for DS#3) but glad to hear some folks have some experience w/ this. Thank you for sharing your experience .

 

[Karenof2]

Thank you for posting this info! Even if DS doesn’t get into USMMA Plans 1A include the other Maritime academies also w/ hefty upfront costs. I was wondering if we could use his 529 $$ for this. We may decide to pay out of pocket (save his 529 $ for DS#3) but glad to hear some folks have some experience w/ this. Thank you for sharing your experience .

You could definitely use the 529 plan. My DS has a coverall education account, we use that money for all fees. It's been wonderful.

 

[Boymomof3]

You could definitely use the 529 plan. My DS has a coverall education account, we use that money for all fees. It's been wonderful.

Thank you! No matter where he goes, we are looking at these kind of fees (uniforms, tech, etc). So happy to hear we can use 529 $!