Yes, 529 plan funds can generally be used to pay for food expenses, with some limitations. Here are the key points on using 529 plans for on-campus and off-campus food:
On-Campus Meal Plans
Students living on campus can use 529 funds to pay for college meal plans. The amount is limited to the amount charged by the college for the meal plan [1][2].
Meal plans are considered part of “room and board” costs, which are qualified education expenses under 529 plans [1][2].
Off-Campus Housing
Students living off campus can use 529 funds for groceries and food expenses. This is considered part of “room and board” [1][2].
The amount is limited to the college’s estimated “cost of attendance” for off-campus room and board. Exceeding this allowance would be considered a non-qualified expense [2].
Keep receipts for all grocery and restaurant purchases made with 529 funds as documentation in case of an audit [3].
The student must be enrolled at least half-time in a degree or credential program [2].
Food expenses for studying abroad also qualify [5].
Food delivery services and meal kits may qualify if used primarily for meals [6].
Expenses like alcohol, parties, entertainment would not qualify [6].
It’s best to withdraw the funds after the expenses are incurred. Prepaying without documentation could be risky [3].
In summary, 529 plans give families flexibility to pay for college food costs on or off campus. Following the guidelines on amounts and documentation can help avoid issues with withdrawals. Let me know if you need any clarification or have additional questions!
