Tax-free withdrawals are available on qualified education expenses. The qualifying education expenses have been expanded to include elementary and secondary education expenses at accredited institutions as well as internet access and computers. This means you can even invest to pay for your children to attend an Islamic school.
Most common education expenses may include the following, but please check the latest guidelines with your tax advisor:
Tuition fees, academic tutoring
Room and board
Commuting and education related travel
Student activity fees
Lab and other fees
Special equipment such as supplies, computer, printer etc.
Miscellaneous expenses such as internet
Special needs services in connection with enrollment or attendance at an eligible school.
There are federal tax and additional 10% penalties on non-qualifying expenses though.
