How does a 529 plan work with the US Naval Academy?

I'm considering the US Naval Academy and heard that a 529 plan can be used for expenses. Does anyone know how that works? What expenses can these plans cover if tuition is free?

A 529 plan is a savings plan with tax advantages that are designed to encourage saving for future education costs. While it's most often used for college tuition, it can also cover a variety of education-related expenses. Regarding military service academies like the US Naval Academy, you are correct that tuition is provided free of cost in return for a service commitment. Therefore, funds from the 529 plan would not need to be used for this purpose.

However, the 529 plan can still be leveraged in a few ways. Firstly, it can be used for several 'qualified' education-related expenses outside of tuition, including some specific fees, books, supplies, and equipment required for certain courses. For instance, if the Naval Academy requires you to purchase a laptop or certain supplies for your studies, the 529 plan could potentially cover these costs.

Secondly, if you were to attend graduate school after your service, you could use the 529 plan to help cover those expenses as the plan does not typically have a time limit for when the funds must be used.

Finally, note that there is flexibility in terms of the plan beneficiary. If you find that you do not need or cannot use all the funds in the 529 account for your own education expenses, you have the option to change the beneficiary to another qualifying family member - for example, a sibling or a future child - who could then use these resources for their education costs.

It's always advisable to consult a financial advisor or consult the specific rules of your 529 plan to understand its full benefits and limitations, especially as these can vary by state.