What Expenses Does an NC 529 Account Cover?
NC 529 funds can be used for a wide range of qualified education expenses, so you can support your student’s goals from kindergarten through college and beyond. Whether you’re planning for tuition tomorrow or planning for the next step today, saving now helps keep your options open. NC 529 Accounts can be used for Qualified Education Expenses (QEE) at eligible schools and programs.
NC 529 eligible expenses include all of the following:
College expenses, including tuition, books, fees, room and board, a computer, and more.
Trade school expenses, as long as they are on the Federal Student Aid list. Apprenticeship expenses for programs registered with the U.S. Department of Labor or State Apprenticeship Agency.
Fees, exam books, and equipment for recognized post-secondary credential programs.
K-12 expenses up to $20,000 per year (per child), including tuition, curriculum materials, books, online educational programs, fees for nationally standardized tests and dual enrollment courses, and tutoring and specialized educational services for students with disabilities (subject to certain requirements).
Special-needs equipment required for enrollment or attendance at an eligible institution
Student loan payments on behalf of the beneficiary or beneficiary’s siblings up to $10,000 per individual.
Rollovers of excess NC 529 funds to your beneficiary’s Roth IRA for their retirement. *Certain criteria apply.
Ready to Start Saving?
See how small contributions today can add up over time — and take the next step toward supporting their future goals.
529 eligible expenses FAQs
Once the NC 529 Account has been open for at least 60 days, an account holder can withdraw funds at any time. The quickest way to make a withdrawal will be to use our website. Simply sign in to your account and follow the steps for a non-qualified withdrawal. You can also download and complete a Request for Withdrawal and email, mail, or fax it to the NC 529 Plan. Note that you will also be responsible for taxes and penalties for the non-qualified withdrawal.
To avoid penalties and tax fees, make sure the savings and earnings you withdraw are used for qualified education expenses. Generally, qualified education expenses are those that explicitly serve an educational purpose. If you’re unsure if a potential expense related to your education is considered an NC 529 eligible expense, read more on the difference between qualified and non-qualified expenses.
One of the benefits of investing in a 529 program is the tax-free earnings. The money you save in an NC 529 Account may grow over time and any earnings are free from federal and state income tax when they are withdrawn and used for Qualified Education Expenses (QEE).