Alexis Akira Toda

Alexis Akira Toda

Mathematical economist

529 qualified expenses

less than 1 minute read

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I opened 529 accounts for my kids about 15 years ago. Their nominal balances have grown by about 200% over this period. (Actually, this is something that I regret. I enrolled in targeted date funds without thinking too much. Investment returns have suffered since 2020 because the portfolio’s bond share increased and inflation was high. I should have invested 100% in stocks instead.)

This year, 529 qualified expenses for K-12 have expanded to include course-required books, AP/SAT/ACT exam fees, among others. This is a huge welcome. To qualify for a tax-free withdrawal, expenses and withdrawals must occur in the same calendar year, so I have just created spreadsheets to track expenses and transferred funds from my kids’ 529 accounts to my cash management account. Since I didn’t remember when I paid the exam fees, Fidelity Full View came in very handy as I was able to search for these expenses.

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