new 529 rules - tutoring and some therapies

[Anonymous]

I understand the new tax bill allows 529s to be used for tutoring and some educational therapies! Let’s collect information here about how that is going to work in practice. All tips appreciated.

[Anonymous]

I haven’t pulled money out of the 529 for tutoring or therapies, but did for school tuition. You just withdraw it, basically. Keep the receipts for what it is used for but there is no documentation required to show you used it for an approved purpose. I don’t think you’d have the 529 directly pay the tutor/therapist the way they can directly pay a college.

[Anonymous]

Anonymous wrote:I haven’t pulled money out of the 529 for tutoring or therapies, but did for school tuition. You just withdraw it, basically. Keep the receipts for what it is used for but there is no documentation required to show you used it for an approved purpose. I don’t think you’d have the 529 directly pay the tutor/therapist the way they can directly pay a college.

Did you ever get audited?

[Anonymous]

Nope. We’ve never been audited. If we were we have the records, though - tuition bills from the school. That’s all you need. You don’t need to prove that the exact dollar you took from the 529 is the exact dollar that went to the tuition (or whatever expense). That’s how the law is written, or so my financial advisor told me.

[Anonymous]

Does anyone have the language on the new tutoring and services covered?

[Anonymous]

We have bought off-campus groceries, WiFi, and computer equipment for our college students with it.

Also you can use it for your own benefit too, like if you take a class or get a master’s. I’ve heard that professional licensing exams will be covered too.