Question for the Money Doctors

Question submitted on Dec 27, 2022.

Question

Can i pay from 529 towards Medical college expenses and pay for her loan .Please help

Answer

Hello - According IRS Publication 970, you can use the funds from your 529 plan anyway you want; however, to be tax free and penalty free, they must be spend on "Qualified Education Expenses."  Qualified Education Expenses are for things like tuition, books, room and board and any other expenses necessary for attending that university (like a computer for example).  It also includes up to $10000 on a student loan.  

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