How 529 Plans Cover Your Childs Gap Year Adventure

In episode 57 of The College Savings Podcast with Fexingo, Lucas and Luna explore a trend that's gaining traction: using 529 plan funds for a gap year before college. They break down the IRS rules that make structured gap year programs — like those offered by City Year, Outward Bound, and the National Outdoor Leadership School (NOLS) — qualified education expenses. The hosts discuss the 'less than one course per semester' test, how room and board costs apply when traveling, and the paperwork families need to keep. They also share real-world examples, including a student who used her 529 to pay for a service-learning program in Costa Rica. If you're a parent or student considering a gap year, this episode gives you the specific rules and strategies to avoid an expensive tax mistake. Lucas and Luna also touch on the broader trend of gap years becoming more structured and how the IRS has gradually clarified the rules. No sponsor breaks, just straight talk from two finance pros. #529Plans #GapYear #CollegeSavings #EducationFunding #QualifiedExpenses #IRS #CityYear #OutwardBound #NOLS #RoomAndBoard #StudentCosts #Finance #FexingoBusiness #BusinessPodcast #LucasAndLuna #TaxRules #CollegePrep #ExperientialLearning Keep every episode free: buymeacoffee.com/fexingo