Utah Educational Savings Plan

529 savings now can be used for computers

Computer purchases made any time during 2015 are eligible expenses

It’s now easier to equip your beneficiary for college thanks to new legislation that defines computers and other related technology as a qualified higher education expense for a 529 account.

Congress gave final approval on December 18, 2015, to the Protecting Americans from Tax Hikes Act, which included provisions from H.R. 529 and S. 335 that impacted 529 plans. President Barack Obama signed the bill into law the same day.

Previously, 529 rules treated computers as a qualified higher education expense only if the beneficiary’s college required them as a condition of enrollment or attendance.

Under the new legislation, computer equipment and related hardware qualify even if they are not specifically required by the university, college, or technical school the beneficiary attends. The new legislation defines desktop computers, laptops, and other related technology as a qualified higher education expense. The costs for internet access and computer software related to a beneficiary’s studies also qualify.

The computer equipment and related software has to be used primarily by the beneficiary while enrolled in school.