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

Episode 32 of The College Savings Podcast tackles a lesser-known 529 strategy: funding graduate medical education. Lucas and Luna break down how medical school's unique cost structure—long duration, clinical rotations, residency expenses—can make a 529 plan a surprisingly effective tool. They walk through a concrete example: a family saving $400 a month from birth, projected to cover nearly half t...

In this episode of The College Savings Podcast, Lucas and Luna explore an often-overlooked qualified expense for 529 plans: driver education. They dive into the IRS rules for vocational training expenses, using the example of a $1,200 driver's ed program at a certified driving school. Lucas explains how the Tax Cuts and Jobs Act expanded 529 qualified expenses to include K-12 tuition and apprentic...

Episode 30 of The College Savings Podcast tackles a growing niche: using 529 plans to fund flight school and aviation career training. Lucas and Luna break down why the IRS treats flight training as a qualified higher education expense when the program is part of a degree-granting institution or a certified vocational school — but not when it's a recreational license. They walk through a real-worl...

Episode 29 explores a growing use for 529 plans: funding coding bootcamps and other non-degree tech training programs. Lucas and Luna break down the IRS rules on qualified expenses, how the TCJA of 2017 expanded 529 eligible programs to include certain certificate and credential programs, and the key requirement that the bootcamp must be offered by an accredited institution. They discuss the examp...

In this episode of The College Savings Podcast, Lucas and Luna explore how 529 plans can be used for K-12 private school tuition, a lesser-known provision from the Tax Cuts and Jobs Act of 2017. They break down the $10,000 annual limit per beneficiary, the distinction between public and private schools, and how this strategy interacts with state tax deductions. Lucas shares a concrete example: a f...

Can you use 529 plan funds to buy your child a car? The answer is more nuanced than you might think. In this episode, Lucas and Luna break down the IRS rules on qualified expenses, explain the 'room and board' loophole that some families exploit, and walk through the specific conditions under which a vehicle purchase could be penalty-free. They also discuss the risks of audit and how to document y...

Lucas and Luna explore how 529 plan funds can be repurposed to help adult children buy their first home, using a specific $35,000 lifetime limit per beneficiary from the SECURE 2.0 Act. They break down the rules: the account must be at least 15 years old, only up to $10,000 per year can be withdrawn, and the beneficiary must be the homebuyer. They walk through a real example of a parent who contri...

Episode 25 of The College Savings Podcast tackles a difficult but important question: what happens to a 529 plan if the beneficiary passes away before the funds are used? Lucas and Luna walk through the IRS rules on penalty-free withdrawals following a beneficiary's death, including the 10% penalty waiver and the tax treatment of earnings. They discuss the distinction between a beneficiary death a...

Lucas and Luna explore a lesser-known 529 plan strategy: using leftover 529 funds to repay student loans after graduation. They walk through the $10,000 lifetime limit per beneficiary under the Tax Cuts and Jobs Act, how it interacts with the state tax deduction on contributions, and what happens if the beneficiary doesn't need the funds. The episode drills into a concrete example: a family in New...

In this episode, Lucas and Luna explore how 529 plans can be used to fund cybersecurity bootcamps and certifications, a qualified expense under the SECURE Act. They discuss the growing demand for cyber talent, the cost of programs like SANS or CompTIA certifications, and how families can leverage 529 plans for non-degree training. Lucas shares a specific example: a student using a 529 plan to pay...

In this episode of The College Savings Podcast, Lucas and Luna break down how room and board costs work with 529 plans. They explain the critical distinction between on-campus and off-campus housing, the cost-of-attendance cap, and what happens if you withdraw more than the official budget. Using real examples from two universities, they walk listeners through the documentation trap that can turn...

Episode 21 of The College Savings Podcast tackles a creative and tax-efficient use of 529 plans: helping fund your child's wedding. Lucas and Luna break down how the SECURE Act allows up to $35,000 in 529 funds to be rolled into a Roth IRA for the beneficiary, and how that same account can later help with a down payment on a first home. They walk through a real example: a couple who used leftover...

In this episode of The College Savings Podcast, Lucas and Luna explore a frequently overlooked question: can 529 plan funds be used for international universities and study abroad programs? They walk through the specific rules set by the IRS and the Department of Education, including how foreign schools qualify as eligible institutions, what expenses are covered for study abroad semesters, and the...

Online degrees are booming, but many families don't realize how 529 plans cover them. Lucas and Luna break down the rules: which online programs qualify, how to handle tuition reimbursement from employers, and the tax implications. They use a real example of a student at Arizona State University's online campus to show how to avoid penalties. Plus, they discuss the new flexibility for part-time en...

Episode 18 of The College Savings Podcast explores how grandparents can use 529 plans to help fund a wedding without triggering gift tax or financial aid penalties. Lucas breaks down the 529-to-IRA rollover loophole that lets unused wedding savings become retirement funds, and Luna questions whether a 529 plan is really better than a simple UTMA account for this purpose. They walk through a concre...

Lucas and Luna break down a frequently overlooked scenario: what happens when a student wins a scholarship or merit-based aid that reduces their qualified education expenses. They walk through the IRS rules on penalty-free withdrawals, the tricky timing of the scholarship offset, and how to avoid double-paying taxes. Using a real-world example of a $30,000 academic scholarship at a state universit...

Episode 16 of The College Savings Podcast explores how grandparents can use 529 plans to reduce their taxable estate while funding a child's education. Lucas and Luna break down the annual gift tax exclusion of $18,000 per beneficiary in 2026, and the special five-year front-loading rule that lets a grandparent contribute up to $90,000 in a single year without triggering gift taxes. They walk thro...

In this episode of The College Savings Podcast, Lucas and Luna explore a surprising new use for 529 plans: saving for a down payment on a first home. With the SECURE 2.0 Act allowing penalty-free rollovers from 529 plans to Roth IRAs, and a handful of states now extending 529 benefits to include home buying, we break down the strategy, the tax implications, and the risks. Lucas explains how a fami...

Most families think 529 plans are only for four-year college tuition. But in 2026, trade schools, apprenticeships, and certificate programs are all qualified expenses. Lucas and Luna walk through the rules, the savings potential, and a real-world example: a Cleveland plumbing apprentice saving $8,000 in tax-advantaged growth over two years. They also cover the $10,000 lifetime limit for apprentice...

Lucas and Luna explore how families can pair a 529 plan with an ABLE account to save for a child with disabilities without jeopardizing Medicaid or SSI. They break down the $18,000 annual contribution limit, the 529-to-ABLE rollover of up to $16,000 per year, and the key difference: ABLE accounts don't count as assets for means-tested benefits. Using a real example of a family in Ohio, they show h...

Lucas and Luna unpack the little-known 'kiddie tax' rule that can turn a 529 plan withdrawal into a surprise tax bill when the beneficiary has unearned income. They walk through the IRS threshold for 2025 ($2,600), explain how the Tax Cuts and Jobs Act changed the rules, and share a real-family scenario where a student's summer internship plus a 529 distribution triggered the tax. The episode also...

Episode 11 of The College Savings Podcast with Fexingo explores a little-known 529 strategy: using leftover funds as a retirement cushion. Hosts Lucas and Luna break down the SECURE 2.0 provision allowing 529-to-Roth IRA rollovers, with a real-world example of a couple who overfunded their son's plan. They walk through the $35,000 lifetime cap, the 15-year holding requirement, and the annual Roth...

In this episode of The College Savings Podcast, Lucas and Luna dive into one of the most overlooked provisions of the SECURE 2.0 Act: the ability to roll over unused 529 plan funds into a Roth IRA for the beneficiary. They break down the specific rules, including the 15-year account requirement, the annual rollover cap of $35,000, and how families can avoid the 'use it or lose it' dilemma. The hos...

Lucas and Luna compare 529 plans and Roth IRAs as college savings vehicles, focusing on a real case: a family deciding between the two. They break down the key trade-offs—tax treatment, contribution limits, financial aid impact, and flexibility—using a $10,000 annual contribution example. Listeners learn the specific scenarios where one option clearly beats the other and the surprising advantages...

Episode 8 of The College Savings Podcast explores an underexplored angle: using a 529 plan as a multi-generational inheritance tool. Lucas and Luna break down how the SECURE Act's 10-year rule for inherited retirement accounts makes 529s a surprisingly efficient way for grandparents to pass education funding to grandchildren without triggering the same tax headaches. They walk through the mechanic...