Withdrawing 529 plan funds for college? Here’s what to know.

A 529 plan is a great way to enjoy some tax advantages while you save up for college. But after all that hard work saving, you want to make sure you are smart about tapping those funds. Sticking to the rules for how and when you use the funds — and steering clear of common snafus in the process — can help you maximize the amount you have stashed away for your higher education.

Reserve withdrawals for qualified expenses

While technically you can tap your 529 plan for whatever amount you want, only withdrawals made for ‘qualified education expenses’ will avoid taxes. These expenses include costs such as “tuition, fees, books, as well as room and board at an eligible education institution,” and they must be for the account beneficiary, said Bankrate. Keep in mind that just because some expenses are “associated with going to school, that doesn’t make them qualified expenses for a 529 plan.”