#Withdrawal rules for 529 plans plus
#Withdrawal rules for 529 plans professional

For example, adding the Principal Plus Interest Portfolio can help ensure a portion of your college savings is principal-protected. This offers you more control to manage risk on your terms. Keep in mind that a Path2College 529 Plan allows you the flexibility to select multiple investment portfolio options within each account. You may also prefer to pay college expenses first out of your highest growth account to maximize federal tax benefits and to encourage gift contributions from friends and family. For example, an older child’s account could be more conservatively invested to help protect your contributions as they near college, whereas a younger child’s account might be invested to balance growth and income strategies during a longer time frame. You might do this to align investment strategies with the time frame each child will begin using the funds. Since there is no cost associated with opening a Path2College 529 Plan account or owning more than one account, many parents opt to open separate accounts for each child. No, but you might want to have a separate account for each child.

#Withdrawal rules for 529 plans professional

You should talk to a qualified professional about how tax provisions affect your circumstances. If you are not a Georgia taxpayer, these withdrawals may include recapture of tax deduction, state income tax as well as penalties. 1Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school and student loans can be withdrawn free from federal and Georgia income tax.See the Plan Description for more information and exceptions. Earnings on funds withdrawn for a purpose other than qualified higher education expenses are subject to federal and state income tax and a 10% additional federal tax (known as the “Additional Tax”). If you need to withdraw the funds for any reason, you can at any time.Your 529 can be used for student loan repayment up a $10,000 lifetime limit per individual.Up to $10,000 annually can be used toward K-12 tuition (per student).You can transfer the funds to another eligible beneficiary, such as another child, a grandchild or even yourself.For example, the choice to go to school might be a delayed decision for the intended child. You can leave the funds in the account as there is no age limit or expiration date.If your child ends up not needing the funds for college, you always have multiple options for your money: