The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs

The SECURE 2.0 Act opened up a powerful new option for families with leftover 529 savings: roll up to $35,000 into a Roth IRA for the beneficiary. In this episode, Lucas and Luna explain the rules—the 15-year account age requirement, the annual Roth contribution limits, and how the clock resets. They walk through a concrete example: a family with $40,000 left after a four-year degree, and how to move $16,000 over three years without triggering taxes or penalties. They also discuss why this change matters for grandparents who own 529 accounts, and how it shifts the calculus on over-saving. If you've been hesitant to put too much into a 529 because of the 'use it or lose it' fear, this episode gives you a reason to reconsider. Plus, a quick note on how listener support keeps the podcast ad-free.

#529Plan #RothIRA #SECURE2Act #EducationSavings #RetirementPlanning #CollegeFunding #TaxStrategy #Finance #FexingoBusiness #BusinessPodcast #MoneyConversations #FinancialLiteracy #StudentLoans #GenerationalWealth #IRA #Savings #Podcast #LucasAndLuna

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Many families don't realize that 529 plans can pay for college student health insurance – but only if it's a school-charged premium. In this episode, Lucas and Luna break down the IRS rules, using a real example: a student at Ohio State University whose mandatory health insurance fee of $2,568 per year is covered by a 529 withdrawal. They explain why private insurance doesn't qualify, how to document the expense, and what to do if the premium is billed separately from tuition. Plus, they share a tip on coordinating with a parent's work plan. This is a must-hear for anyone navigating college bills in fall 2026.

#CollegeSavings #529Plan #HealthInsurance #CollegeCosts #IRS #QualifiedExpenses #OhioState #Fexingo #Finance #PersonalFinance #CollegeFunding #StudentHealth #EducationSavings #TaxAdvantaged #Coaching #BackToSchool #Podcast #BusinessPodcast

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Episode 135 of The College Savings Podcast dives into a lesser-known but powerful provision from the SECURE 2.0 Act: using 529 plan funds to pay down your child's student loans. Lucas and Luna break down the $10,000 lifetime limit per beneficiary, what types of loans qualify, tax implications, and how this strategy fits into a broader college savings plan. They also discuss coordination with student loan interest deductions and caution against overfunding. Real example: if your child has $30,000 in federal loans, you can withdraw up to $10,000 tax-free from their 529 to reduce principal. Tune in to understand whether this option makes sense for your family and how to avoid common pitfalls like missing the annual gift tax exclusion rules.

#529Plan #StudentLoanRepayment #SECURE2.0 #CollegeSavings #EducationFunding #StudentDebt #TaxPlanning #529Withdrawals #FinancialAid #FamilyFinance #CollegeCosts #Loans #TaxFree #Beneficiary #GiftTax #FexingoBusiness #BusinessPodcast #Finance

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In this episode of The College Savings Podcast, Lucas and Luna explore a commonly overlooked 529-qualified expense: off-campus parking permits, public transit passes, and even gas money for commuting students. They break down the IRS rules around room and board cost allowances, using the actual example of a University of Michigan student saving $1,200 per semester on a commuter parking pass and bus pass. Plus, a listener-funded moment on how Fexingo keeps the show ad-free.

#529Plans #EducationSavings #CollegeCosts #OffCampusParking #CommuterStudent #RoomAndBoard #IRS #QualifiedExpenses #Parenting #CollegePlanning #Transportation #PublicTransit #Fexingo #Finance #PersonalFinance #FexingoBusiness #BusinessPodcast #CollegeSavingsPodcast

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In this episode of The College Savings Podcast, Lucas and Luna explore a surprisingly common question among parents: can a 529 plan pay for your child's laptop, tablet, or other technology needed for college? The answer is yes, but with important caveats. The hosts break down the IRS rules around 'qualified expenses' and how technology purchases like a $1,200 laptop or a $300 graphing calculator qualify as long as they are required for enrollment or coursework. They also discuss what happens if the technology is purchased before the student is officially enrolled, and offer practical tips on documentation and timing to avoid IRS headaches. Drawing on specific examples, such as a computer bundled with a warranty or software, Lucas and Luna explain which portions are eligible and which are not. This episode is a must-listen for any parent planning to use 529 funds for tech purchases, helping you navigate the fine print and spend your savings wisely.

#529Plan #CollegeSavings #QualifiedExpenses #TechnologyPurchases #LaptopForCollege #IRSGuidelines #EducationFunding #TaxAdvantaged #StudentExpenses #HigherEdFinance #CollegeCosts #ParentingFinance #Section529 #TaxPlanning #ComputerExpenses #FexingoBusiness #BusinessPodcast #Finance

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Lucas and Luna explore a lesser-known 529 plan expense: college application fees. With the average student applying to 8-10 schools, application fees can total $500-$1,000. Lucas explains how the Tax Cuts and Jobs Act expanded 529 qualified expenses to include fees for admission applications, testing (SAT/ACT), and transcript submission. Luna shares her own experience helping a nephew navigate the process. They discuss how families can use 529 funds strategically—paying fees from the account directly or reimbursing themselves, and the importance of keeping receipts. The episode also covers limits: fees for graduate school and international applications are eligible, but fees for housing deposits or enrollment deposits are not. A practical guide for families navigating the college admissions process.

#529Plan #CollegeSavings #CollegeApplicationFees #EducationFunding #TaxCutsAndJobsAct #SAT #ACT #TranscriptFees #FinancialPlanning #CollegeAdmissions #FexingoBusiness #BusinessPodcast #Finance #PersonalFinance #HigherEducation #StudentCosts #QualifiedExpenses #FamilyFinance

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Episode 131 of The College Savings Podcast: Lucas and Luna tackle a less-discussed but critical use of 529 plans: paying for trade school tools, equipment, and required supplies. With skilled trades on the rise and apprenticeships booming, many families overlook that 529 funds can cover everything from welding helmets and electrical tool kits to plumbing textbooks and safety gear. Lucas breaks down the IRS rules — the equipment must be required for enrollment or attendance, not just recommended — and explains how qualified expenses differ at a trade school versus a four-year college. Luna shares a listener story of a plumbing apprentice who used 529 funds to buy a $1,200 toolbox without triggering a penalty. They also discuss why more families should consider trade school as a smart, cost-effective path and how 529 tax benefits apply. Plus, a brief mention of listener support at buy me a coffee dot com slash fexingo. Specific, actionable advice for parents planning for non-traditional education routes.

#529Plans #TradeSchool #SkilledTrades #Apprenticeship #ToolsAndEquipment #EducationSavings #CollegeSavings #IRSGuidelines #WeldingHelmet #PlumbingTools #TradeSchoolSavings #VocationalEducation #Finance #FexingoBusiness #BusinessPodcast #LucasAndLuna #TaxFreeWithdrawals #CareerTechnicalEducation

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In this episode, Lucas and Luna explore how 529 plans can cover internship-related expenses, a rarely-discussed qualified use. They break down the IRS rule on minor expenses while enrolled, using the example of a summer internship at a marketing firm in Chicago. Lucas explains that rent, travel, and even a laptop for the internship can be paid from a 529 plan if the student remains enrolled at least half-time. Luna shares data from a 2025 NACE survey showing 62% of internships are unpaid, making this a crucial funding option for families. They also discuss the distinction between expenses incurred as part of an academic requirement versus voluntary internships, and caution against withdrawing funds for a post-graduation job. The episode includes a natural donation segment supporting the podcast.

#529Plan #InternshipExpenses #CollegeFunding #EducationSavings #IRSQualifiedExpenses #UnpaidInternships #StudentFinance #FexingoBusiness #BusinessPodcast #TheCollegeSavingsPodcast #LucasAndLuna #NACESurvey #InternshipFunding #SummerInternship #RentExpenses #TravelCosts #LaptopExpenses #EnrollmentRequirement

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In this episode of The College Savings Podcast, Lucas and Luna dig into a 529 plan benefit many families overlook: using funds for registered apprenticeship programs. With college costs rising and trade careers gaining prestige, more students are pursuing apprenticeships in fields like electrical work, plumbing, and IT. Lucas explains how the 2019 SECURE Act expanded 529 qualified expenses to include fees, tools, and equipment for registered apprenticeships, and walks through a concrete example of a $15,000 annual cost at a union electrical apprenticeship in Chicago. Luna asks the listener's questions: Does it cover living expenses? What if the apprenticeship isn't registered? They also touch on state tax implications and how this stacks up against traditional college savings. A must-hear for parents exploring non-college pathways for their kids.

#529Plans #Apprenticeships #CollegeSavings #TradeSchool #SECUREAct #EducationFunding #Finance #PersonalFinance #Parenting #CareerPathways #SkilledTrades #ElectricalApprenticeship #UnionApprenticeship #TaxAdvantaged #FexingoBusiness #BusinessPodcast #CollegeSavingsPodcast #StudentCosts

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In this episode of The College Savings Podcast, Lucas and Luna explore the recent IRS clarification that allows 529 plan funds to pay for off-campus internet service and cell phone bills as qualified education expenses. They break down the exact IRS rules from 2026, explain how the Tax Cuts and Jobs Act expanded the definition of 'qualified higher education expenses' to include technology and connectivity costs, and provide a concrete example: the Smith family saving $1,200 per year in tax-free distributions by paying for their daughter's off-campus apartment internet and cell phone plan through their 529. Lucas and Luna discuss what counts (monthly service plans, activation fees, taxes) and what doesn't (purchasing a new phone or laptop under this category), how to document expenses for the IRS, and how to coordinate with other tax credits like the AOTC. They also cover the strategic angle: using 529 funds for these recurring bills frees up other income for saving or investing. Whether your child lives off-campus or studies from home, this episode provides the specific guidance you need to maximize your 529 plan's benefits.

#529Plans #QualifiedExpenses #OffCampusInternet #CellPhoneBills #CollegeSavings #IRSClarification #TaxCutsAndJobsAct #EducationFunding #StudentExpenses #ConnectivityCosts #TaxFreeWithdrawals #DocumentationTips #AOTC #FexingoBusiness #BusinessPodcast #FinancePodcast #CollegeSavingsPodcast #Fexingo

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