529 Plan Withdrawals Not For Education. If the funds aren't used for college, you could withdraw them and pay income taxes on the withdrawal and. Prepaid tuition plans allow the account owner to.
Read on to learn how to avoid pitfalls and make the most out of your savings. All Withdrawals Include Earnings - Unlike a Roth IRA, all withdrawals include a portion of earnings, so you cannot recapture an initial deposit to use to pay bills without also paying tax on a portion. Other plans have penalties for making a withdrawal before the account is a certain age or the investment has reached maturity.
QEEs include tuition, fees, books, supplies and equipment.
The earnings portion of a withdrawal not used for a designated beneficiary's qualified higher education expenses.
Withdrawn funds should be used for qualified expenses incurred in the same year. You have the option of having the funds sent to the eligible education institution, your bank account or via check to you, or your. Unless your student is planning postgraduate education, or you have another potential beneficiary in the family to whom you can change the.