Can I Use My Invest529 Account for Computer Equipment?

If you’re saving for education with an Invest529 account, you may already know it covers qualified education expenses like tuition or room and board. But did you know that Invest529 accounts can also cover some tech-related costs? Computers, software and internet access may be considered qualified 529 plan education expenses, depending on how they’re used. Related: Saving for Room and Board with a 529 Account

What Technology Expenses Can an Invest529 Account Cover?

• Computers and Tablets: A personal computer, laptop, or tablet that a student uses primarily for schoolwork is a qualified education expense under federal guidelines. This means that whether they’re writing papers, attending virtual classes, or completing online homework, the device could qualify.
• Computer-Related Accessories: Equipment like printers, keyboards and external drives may also qualify if they support educational use of the computer, laptop, or tablet.
• Educational Software: Software necessary for coursework is generally covered as a qualified education expense. This could include applications for word processing, data analysis, or graphic design. However, software for hobbies or entertainment doesn’t qualify.
• Internet Access: Having reliable internet is essential for many students, especially for virtual classes or research projects. While internet service can qualify, it’s important that it’s tied to a student’s educational needs.

While these expenses might qualify, there are nuances:

• Primarily for Education: The key to most of these expenses is that they need to be used primarily for schoolwork.
• Documentation is Important: Keeping receipts and records can be helpful for tracking your expenses.
• Not Every Tech Purchase Qualifies: Items used for personal entertainment or gaming don’t count as educational expenses, even if they’re purchased alongside a computer or software.

Computers, software, and internet access aren’t just nice-to-haves—they’re often essential for success. Using your Invest529 account for these qualified education expenses can help make higher education a more affordable. What are Qualified Expenses?

This blog is for informational purposes only. Invest529 does not provide tax, legal or investment advice. Please consult a tax, legal or investment professional.