This is the term for the accepted uses of funds from a 529 plan. Depending on the type of plan, the list of qualified distributions could be short or long; for prepaid tuition plans, only tuition and fees count as qualified distributions, whereas education savings plans cover housing, books, and equipment as well.

In addition to the basic college costs considered qualified distributions, account owners may also be able to use their 529 plan for private school – both elementary and secondary – up to a certain limit. Other qualified distributions from 529 plans include the cost of an apprenticeship, trade/vocational school, or student loans (also up to a limit).