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If you withdraw the money for non-qualified expenses, then those withdrawals are subject to taxes — plus, there’s a 10% IRS penalty on top of that (though there are a few exceptions to the ...
After years of investing in your children’s college education, you’re ready to reach into your 529 college savings plan and send your kid off to the best years of his or her life. But while ...
In cases where a child doesn't go to college, families still have some flexibility in using the funds without paying a withdrawal penalty. A 529 college savings plan allows families to save money ...
The 529 plan must be open for at least 15 years before attempting the 529-to-Roth rollover. And funds deposited in the last five years and their associated interest are not eligible for this transfer.
Alternatives to 529 plans without using an IRA. ... There’s no penalty when you withdraw money, but you won’t enjoy any tax benefits as you would with a 529. Plus, earnings are subject to ...
Thanks to new rules set out in the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act of 2022, unused 529 funds can be transferred to the 529 beneficiary’s Roth IRA account.
Beneficiaries of a 529 plan will be able to convert a lifetime total of $35,000 from a 529 plan to a Roth IRA without incurring taxes or penalties. ... previously stranded in a 529 plan and do so ...
Continue reading → The post 529 Plan Withdrawal Rules appeared first on SmartAsset Blog. A 529 college savings plan, also known as a qualified tuition plan (QTP), is one of the best choices for ...