What are qualified education expenses?

Withdrawals from your PA 529 account are tax-free when used to pay qualified education expenses. These are defined by the Internal Revenue Code to include the following:

  • Tuition
  • Room and board (as specified in the college's cost of attendance; must be at least a half-time student)
  • Required books
  • Required supplies
  • Required equipment, including computers*
  • Mandatory fees
  • Special needs services

* Must be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution.

Related Topics

The Pennsylvania 529 College Savings Program sponsors two plans-the Guaranteed Savings Plan (GSP) and the Investment Plan (IP). The guarantee of the PA 529 Guaranteed Savings Plan is an obligation of the GSP Fund, not the Commonwealth of Pennsylvania or any state agency. Before investing in either plan, please carefully read that plan's disclosure to learn more about that plan including investment objectives, risks, fees, and tax implications.