529 Distribution

Can 529 savings be used for post undergraduate prep courses? For instance, can the LSAT or MCAT preparation courses be paid for?

I’m pretty sure they can’t be. Read chapter 8 of IRS Pub 970.


Qualified expenses need to be for enrollment or attendance at an eligible institution. LSAT or MCAT prep would be similar to SAT prep, for application to, not enrollment or attendance at a school.

I agree with analogy but what makes SAT courses different is the student is not enrolled in a qualified institution at the time. The test is required to get to the next institution, so thought the answer “may” be different and fall under “fees” in chapter 8.

I think the first problem you will probably run into is that the provider of the LSAT or MCAT prep course is not an “eligible institution.”

Taking the LSAT or MCAT while at the current institution isn’t a requirement for enrollment or attendance at that institution, they are also for admission to the next institution.

I agree with annoyingdad.