Let’s break it down.

Here’s where your 529 funds can go, according to IRS guidelines eligibility rules:

✅ Pro Tip: Check with your state’s 529 Plan. Always keep invoices and statements. You’ll need them if the IRS comes calling — and many 529 plans require documentation for distributions.

Curious whether something qualifies? Here’s your go-to checklist:

Is it required by the institution?
Is the school eligible under IRS rules?
Is the student enrolled at least half-time (for room & board)?
Is it listed in IRS Publication 970?

Lesson 2: What Can Qualified Education Expenses Be Used For?

So you’ve opened a 529 plan — now it’s time to make those dollars count. The key? Knowing exactly what counts as a qualified education expense. This determines whether you can withdraw funds tax-free — or risk a penalty.

I’ve seen people jump through hoops to find the biggest deal. But here’s a smarter move: apply that same thinking to your education spending. Your 529 plan is more than a savings tool — it’s a powerful, tax-advantaged way to pay for learning at every stage of life.

Let’s break it down.

Here’s where your 529 funds can go, according to IRS guidelines eligibility rules:

✅ *Pro Tip**: Check with your state’s 529 Plan. Always keep invoices and statements. You’ll need them if the IRS comes calling — and many 529 plans require documentation for distributions.*

Curious whether something qualifies? Here’s your go-to checklist:

Is it required by the institution?

Is the school eligible under IRS rules?

Is the student enrolled at least half-time (for room & board)?

Is it listed in IRS Publication 970?

Still unsure? Ask your school for a list of required expenses, or book a planning session with Pelican to walk through your family’s exact situation.

This post is part of our series, “What Are Qualified Education Expenses? A Family Guide to Smarter Spending.”

Continue to explore more of the series.

Lesson 2: What Can Qualified Education Expenses Be Used For?

So you’ve opened a 529 plan — now it’s time to make those dollars count. The key? Knowing exactly what counts as a qualified education expense. This determines whether you can withdraw funds tax-free — or risk a penalty.

I’ve seen people jump through hoops to find the biggest deal. But here’s a smarter move: apply that same thinking to your education spending. Your 529 plan is more than a savings tool — it’s a powerful, tax-advantaged way to pay for learning at every stage of life.

Let’s break it down.

Here’s where your 529 funds can go, according to IRS guidelines eligibility rules:

✅ Pro Tip: Check with your state’s 529 Plan. Always keep invoices and statements. You’ll need them if the IRS comes calling — and many 529 plans require documentation for distributions.

Curious whether something qualifies? Here’s your go-to checklist:

Is it required by the institution?

Is the school eligible under IRS rules?

Is the student enrolled at least half-time (for room & board)?

Is it listed in IRS Publication 970?

Still unsure? Ask your school for a list of required expenses, or book a planning session with Pelican to walk through your family’s exact situation.

This post is part of our series, “What Are Qualified Education Expenses? A Family Guide to Smarter Spending.”

Continue to explore more of the series.

✅ *Pro Tip**: Check with your state’s 529 Plan. Always keep invoices and statements. You’ll need them if the IRS comes calling — and many 529 plans require documentation for distributions.*