rbynaker
Level 14
03-12-2022
03:52 PM
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The money can be used for whatever the account owner wants to use it for. I suspect your real question is does it qualify as tuition and avoid penalties. No. The expenses have to be for the beneficiary to qualify. See 529(e)(3)(A) The silver lining though, the account owner can easily change the beneficiary to someone else in the same generation (such as a sibling). So follow the appropriate steps and everything turns out fine. Skip some steps and you have taxable income and a penalty.
Rick