529 question

[Swimmer]

Hello, all,

I’ve asked Vanguard, where I hold 3 529 accounts. They say read IRS Pub.970. Can’t find the answer there. Tried calling the IRS and the question didn’t fit into their long list on their voicemail list. So …I’m sure a fellow Boglehead will know the answer.

My grandson, currently a high school senior, is in the process of submitting college applications. He has applied to several and the application fees add up. Are these fees considered qualified expenses under 529?

Thanks for any help.

[cmr79]

Entrance/application/standardized testing fees are not qualified expenses for the purposes of 529 withdrawals.

[lakpr]

Hello, all,

I’ve asked Vanguard, where I hold 3 529 accounts. They say read IRS Pub.970. Can’t find the answer there. Tried calling the IRS and the question didn’t fit into their long list on their voicemail list. So …I’m sure a fellow Boglehead will know the answer.

My grandson, currently a high school senior, is in the process of submitting college applications. He has applied to several and the application fees add up. Are these fees considered qualified expenses under 529?

Thanks for any help.

https://www.savingforcollege.com/articl ... ation-fees

The statutory language at 26 USC 529(e)(3) states that “The term ‘qualified higher education expenses’ means tuition, fees, books, supplies and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution.”

College application fees and admissions testing fees are paid prior to a student’s acceptance for admission at an eligible educational institution. They may be required for admission, but they are not required for enrollment or attendance.

[Swimmer]

Thank you all,
I knew I’d get a real answer here!