Virginia College Savings Plan families may now use savings in their VEST, CollegeAmerica, and CollegeWealth accounts to purchase computers once the student is enrolled in college.

Under the American Recovery and Reinvestment Tax Act of 2009, Section 529 qualified higher education expenses include the costs paid or incurred for the purchase of any computer, technology, equipment, or internet access and related services to be used by the 529 account beneficiary and his or her family during any of the years the beneficiary is enrolled at an eligible technical school, community college, or university. Computer software designed for sports, games, or hobbies are not eligible expenses, unless the software is predominantly educational in nature.

The provision, however, only addresses computers purchased with 529 funds in 2009 and 2010. It is unknown whether Congress will later extend this section of the economic stimulus package. Prior to this change, computers were allowable 529 expenses only if they were specifically required for a student’s enrollment by a college or university.