Using a 529 Plan for Your Child's Gap Year Program

In Episode 36 of The College Savings Podcast, Lucas and Luna explore whether a 529 plan can cover expenses for a gap year program — think structured travel, volunteer work, or internships between high school and college. They break down IRS rules on qualified withdrawals, the difference between a legitimate educational program and a personal vacation, and how to document expenses to avoid penalties. Featuring a real example from a family using a 529 for a 10-week cultural exchange in Costa Rica, they explain what counts as 'room and board' when the student isn't enrolled at an eligible institution. They also touch on the 2026 rule allowing 529-to-Roth rollovers and how a gap year might affect that timeline. If you're considering a gap year for your teen, this episode gives you the concrete guidelines you need to avoid a tax surprise. #529Plan #GapYear #CollegeSavings #EducationFunding #Finance #FexingoBusiness #BusinessPodcast #QualifiedExpenses #IRS #RoomAndBoard #StudyAbroad #CostaRica #StudentCosts #TaxFreeWithdrawals #RothIRA #2026 #Podcast #CollegeSavingsPodcast Keep every episode free: buymeacoffee.com/fexingo