529 Room & Board Expenses for Co-op?

Paying for College
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<p>My son is in a program that is heavy on co-op experience (will be alternating co-op and on-campus classes from now until he graduates)…he starts the first of what will be 5 co-ops in January. I’m looking for opinions about the possibility of taking 529 withdrawals for his room and board expenses incurred during the co-op.</p>

<p>As the rule reads as long as he is considered a half-time student or more, we can withdraw up to the university’s COA amount for off-campus expenses. I guess there is the rub…what will his student status be during his co-op? He will pay a $465 co-op fee for the semester to the university…and that is it.</p>

<p>I’m guessing that he will not be considered a 50% student, and plan to call the school after the first of the year. However, I was curious if any of you have any experience with this situation?</p>

<p>Thanks in advance!</p>

2

<p>I have no experience with this but really doubt you can use 529 funds for coop. As far as I know coop students don’t get grades and they earn $. The coop fee would probably be considered an administration fee to keep the student’s spot in school and coord classes for upcoming semesters. Hopefully someone will have actual experience in this.</p>

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<p>

I would think he still is a full-time student.</p>

4

<p>Great news! The university classifies all student on co-op as “full-time.”</p>

<p>"Your Student Status on Co-op. The University of Cincinnati classifies all students while on a co-op semester as full time students of the University. If for any reason you need to provide proof of your status as a full-time student while on co-op, this letter should suffice.</p>

5

<p>Well, I just learned something.</p>

<p>I checked the school my S went to and it’s website said the same thing that the University of Cincinnati said, that the student is a full time student while on co-op and they would provide a letter, if necessary.</p>

<p>Took a look at the IRS publication and it seems that you are good to go with room and board:</p>

<p>[Publication</a> 970 (2012), Tax Benefits for Education](<a href=“Publication 970 (2022), Tax Benefits for Education | Internal Revenue Service”>Publication 970 (2022), Tax Benefits for Education | Internal Revenue Service)</p>

<p>Thanks for the info!</p>