Does UPS pay for your Dental expenses?

529 plan - can my ex reimburse me for college expenses I pay for a beneficiary?

• I have a question about the use of a 529 account. My daughter is the beneficiary for two 529 accounts, one that my ex-husband and I set up while we were married, and one that my ex-husband's parents invested in. I do not have any control over either account. Ideally, when we get a bill, my ex would submit his portion directly to the financial institituion, but I suspect that, like I've done for the past several years, I'll have to pay in full, and then seek reimbursement from him. I am the one who will be receiving all of the bills for our daughter's college expenses. If I pay the bills, can my ex-husband or ex-inlaws give me reimbursements from the 529 account if we keep very good records regarding what each 529 withdrawal is going towards (and only use it for eligible expenses)? Is there a requirement that 529 funds be paid directly to the financial institution, or can I be reimbursed for payments that I make for eligible expenses? Our divorce settlement requires us to pay for college based on our respective incomes (after child support and alimony). Right now, it's roughly 60/40. My ex doesn't dispute that he has to pay for 60% of college expenses. What I'm asking is specifically whether, when I get a bill for tuition or other "qualified education expenses" and I pay for it out of my bank account, and send an itemized and detailed invoice to my ex-husband regarding his portion of these qualified educational expenses, can he withdraw money from the 529 and give it to me to cover his portion of the expenses. Both of us will keep very clear paper trail as to what the expenses are, and which payments cover which expenses. I'll also be really careful that expenses and reimbursement happen in the same calendar year. I have been keeping really good records, so that shouldn't be a problem if I'm audited. I just need to know whether it's PERMISSIBLE for 529 payments to go to me after I'd paid a bill rather than through the colllege.

• Answer:

  I would not do this. I've had problems with the IRS for just $35 that drove me to smoking. What I would do is see if I could somehow have checks from that account that I could write myself. Or, I would ask if somehow I could be added to the account so you can transfer money.