Using Your 529 Plan for Your Child's Medical Residency Costs

Episode 55 of The College Savings Podcast explores a little-known 529 strategy: using tax-advantaged funds to cover costs during medical residency. Lucas explains the IRS rules behind qualified medical residency expenses, including licensing fees, travel for interviews, and relocation costs. Luna questions the eligibility of residency stipends and whether the plan can be used for board exam fees. The hosts discuss a real-world case: a family in Ohio who redirected unused 529 funds to support their daughter through a four-year internal medicine residency, saving an estimated $18,000 in taxes and penalties. They also cover the pitfalls of overfunding and the importance of keeping detailed receipts. The episode closes with a forward-looking question about whether the IRS will expand qualified expenses for graduate medical education. If you have a child heading to med school or residency, this episode offers a concrete strategy to stretch your 529 dollars further. #529Plan #MedicalResidency #CollegeSavings #GraduateMedicalEducation #IRS #TaxAdvantaged #ResidencyCosts #BoardExamFees #RelocationExpenses #LicensingFees #InternalMedicine #Ohio #FamilySaving #Overfunding #Finance #FexingoBusiness #BusinessPodcast #EducationFunding Keep every episode free: buymeacoffee.com/fexingo