Frequently Asked Questions
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Withdrawals
4. What happens to the balance if my child graduates from college and has money left over in his/her 529 account?
     

As the account owner, you have three primary options:

  1. You may leave the money in the account to be used by the student for additional studies.
  2. You may transfer the funds to another family member of the original beneficiary (that could include yourself).  This could be as simple as changing the named beneficiary and leaving the funds in the same plan.
  3. You may withdraw the money.  If there are no qualifying expenses you pay the 10% penalty on the gain and also recognize the gain as ordinary income and the funds are yours to use as you wish. 

An important element with all of these options is that the account owner has 100% control of the account. 


 
1. How do I withdraw monies in payment for college?
2. May the 529 funds be used to purchase a computer?
3. What if my grandchild is awarded a scholarship and doesn't need the money that I have put in the 529 account?
5. Is there a minimum time period during which the account must be held before monies can be withdrawn?
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Do you want guidance in selecting a 529 plan?  Click the Contact Us button below and speak to a live advisor, or drop us an email and we will be pleased to assist you. If you are a do-it-yourself person, click the Professor for his assistance in sorting and ranking plans or click on the National Map to locate a specific state's 529 program.

 

 

 

 
 
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