529 Purchase Protection is a service designed to give you peace of mind when spending the funds you have accumulated in your 529 College Savings Plan. It covers qualified expenses and provides protection against potential taxes and penalties imposed by the IRS if they determine a withdrawal from the 529 plan wasn't used for qualified educational expenses.

529 Purchase Protection is not an insurance policy. It is a protection product, offered by Backpack Payment Technologies, Inc., providing you with a service where we help you certify, document and track your eligible spend by category. 529 Purchase Protection provides specific coverage and reimbursement of Covered Taxes and Penalties resulting from IRS audits on 529 Funds spent on eligible Tuition Expenses and Non-Tuition Expenses.