What Happens To A 529 If Not Used
Eligible family members include the original beneficiarys siblings parents cousins nieces nephews aunts uncles grandparents spouse and children. Early or Non-Qualified 529 Withdrawals If you withdraw funds from your 529 account for non-qualified uses which might be the case if your child is drafted to the WNBA right after high school then you will be subjected to a 10 early withdrawal penalty on your investment earnings ONLY. How To Use A 529 Plan If A Child Does Not Go To College Investing To Thrive Only the earnings portion of a non-qualified 529 plan distribution is subject to a 10 withdrawal penalty. What happens to a 529 if not used . If the original beneficiary doesnt wind up going to college or not all of the money gets used you can change the beneficiary to someone else to use the rest of the money and not suffer any unexpected penalties or taxes. When you take money out of a 529 earnings and contributions are withdrawn proportionately However there are several circumstance