|Question: My child is the beneficiary of a 529 plan. Can he use the 529 funds for vocational school?|
Section 529 funds can be used for some vocational schools. A vocational school, like a college, graduate school, or foreign university, may be considered an "eligible educational institution" if approved by the U.S. Department of Education (DOE). An approved vocational school will appear on a list of schools maintained by the DOE (available on the DOE website).
A word of warning, though. States aren't required to follow federal eligibility guidelines, and some may prohibit the use of 529 funds for vocational school. Check with the administrator of any 529 plan you're considering to be sure.
Note: Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. More information about 529 plans is available in each issuer's official statement, which should be read carefully before investing. Also, before investing, consider whether your state offers a 529 plan that provides residents with favorable state tax benefits.