Fidelity Viewpoints published a very useful article, "How To Spend From A 529 College Plan: The Right Way Reduces Taxes, Avoids Penalties, and Won't Jeopardize Financial Aid." This article provides a 9-step guide to help you make your 529 savings go as far as possible.

Some of the Key Takeaways include:

• Withdrawals from 529 plans are not taxed at the federal level--as long as you understand and follow all the rules for qualifying expenses. You'll have to report your 529 plan spending to the IRS, so keeping a careful record is important.
• Decide ahead of time how you'll withdraw funds and use them.
• You'll also want to plan ahead for any tax credits you may qualify for, which could help you decide how much you need to take from your 529 account.
• 529 saving plans aren't just for college. You can spend up to $10,000 from a 529 plan on tuition expenses for elementary, middle, or high school.

To read the full article, click here.