Sunday, June 20, 2010

If you open a 529, can you continue to make withdrawals after the child is no longer your dependent? 529 College Savings Answers

When our readers and users of send us questions, we'll post the answers here to help anyone searching for information on the best ways to save for someone's college education.

If you open a 529 for your child, can you continue to make withdrawals for education expenses after they are no longer your dependent?

529 plans are designed to pay college expenses for dependent children or other dependent family members as defined in the Internal Revenue Code. If the child is no longer a dependent, you can no longer use the account to pay for the education expenses of that child. However, one of the great features of a 529 plan is the ability to change the beneficiary. The law allows for a broad range of alternate beneficiaries once the intended recipient is no longer using or eligible to use the funds. Those include siblings of the beneficiary, you, your spouse, and numerous others.

Share your thoughts: How are you supporting/motivating your child to go to college?

No comments:

Post a Comment