Currently working full time, plan to attend grad school part time next year. I am thinking about opening a 529 account for myself to take advantage of the tax deduction ($5000 per year) and use the account to pay for my rent while in school next year. My employer will be covering the tuition, hence why I plan to use 529 on rent.
Am I missing something here? I don’t want to break any laws. AI is telling me it would save me ~$4k by the time I finish school, which is why I’m seriously considering doing this.
Opening 529 to pay my rent while in part time graduate school
byu/Citronfikus inpersonalfinance
Posted by Citronfikus
2 Comments
As long as you’re enrolled at least half time and your rent doesn’t exceed the school’s estimated cost of housing.
you have to check what the school has set for the “cost of attending allowance”; if they say room and board costs 10,000 per year then thats all you can take out for rent.
your state might also have a “Seasoning” time on the tax deductions. if you contribute in 2026 and take the deduction and use the funds in 2026 or 2027 they might claw back the deduction