529 State Tuition Plan withdrawal
We had a family member set up a 529 State Tuition plan for one of our children. The account owner is not part of the immediate family of the student (beneficiary). We expect to have left over funds in the account upon his graduation (excess of 100K)- what are the options available for this. I know the funds can be held for future education but are there additional options.
Terry Says
Are you sure none of your immediate family members will need the money for college? Or that none of them will decide to go on to Graduate School?
The only other alternative is to pay a 10% penalty, and taxes on the gains, if you take the money out. Read this article for details.
