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Using Your 529 Plan for Dual-Credit Classes

It’s becoming increasingly common for students to take college-level classes while still in high school, an advanced learning process called dual enrollment.

According to the U.S. Department of Education, students who earn college credits prior to high school graduation reduce their average time-to-degree while increasing the likelihood of graduation. For parents, it’s an opportunity to reduce future college expenses by shortening the time to college graduation.

Parents of high school students who are considering getting a jumpstart on their college degree at an accredited school can withdraw money from their Virginia529 account, without a tax penalty, to fund these courses.

Tuition and fees for college courses, regardless of when they are taken, are qualified higher education expenses. This provision includes vocational courses taken at eligible postsecondary schools as well.  Related: Is your institution 529 eligible?

Dual enrollment courses are now offered in nearly 48 states and the majority have students pay a portion of the tuition.* Using 529 plan money for dual enrollment can be helpful since federal financial aid is not available to students unless they have a high school diploma or equivalency.

Virginia529 is here to help you prepare for your child’s entry into college or other type of post-secondary training program.

*National Alliance of Concurrent Enrollment Partnerships

 

This information does not constitute tax advice and is provided for informational purposes only. Please consult your tax advisor, financial advisor, and/or local taxing authority for more information.


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Virginia529 offers free, in-person information sessions at locations across Virginia. These hour-long sessions highlight the program’s three plans, explain the benefits to account owners and give you the chance to get your questions answered. If you don’t live near one of our in-person sessions, Virginia529 offers online webinars where you can learn more from the comfort of your own home.