529 College Account
We started a 529 for our child years ago. She was awarded a scholarship. There is too much money in the account currently. What is the best, least painful, way to get our money back out, so I can use it for retirement?
Thank you.
Terry Says
Bravo! But wait — did she get a full four-year scholarship for room and board and expenses?? If not, leave it in the plan as she may need it. And if she is smart enough to get a great scholarship, might she not want to use it for graduate school one day??
Don’t try to get the money out. You’ll pay ordinary income taxes on any gains, PLUS a 10% penalty! And if at the end of her schooling there is still money left, she can roll up to $35,000 over into her own ROTH IRA, if the account has been held 15 years.
Now, start saving more for YOUR retirement!
