How Withdrawals Work. As a 529 account owner you are effectively reimbursing yourself for higher education expenses when making a withdrawal.

Simply put, withdrawals from 529 Plan accounts can be tax-free when the money is used to pay for Qualified Education Expenses, or QEEs, as specified in IRS Publication 970.

You can use funds from a 529 account for a wide range of qualified education-related expenses.That includes tuition, fees, books, supplies, and computers. The money can also go toward expenses for ...

Most of the attention placed on college-savings plans focuses on the benefits of investing for tax-free growth before the college years. Less attention is devoted to making withdrawals from these ...

Unfortunately, an IRS computer matching issue often crops up when the 529 account owner, as opposed to the account beneficiary, ... and $4,000 of your 529 withdrawals become “non-qualified.” ...

A 529 plan is a tax-advantaged account you can use to pay a wide range of education expenses, with plans sponsored by every state and the District of Columbia. They allow tax-free withdrawals for ...

But if you use your 529 as a transactional account, you won't get the benefit of tax-free earnings. For example, let's say you contributed $10,000 to a 529 account and left it in there for 17 years.

Analysis 529 Accounts Are Not Your Divorce Piggybank “Unilaterally withdrawing funds from 529 accounts to pay for non-education related expenses while a divorce action is pending is a risk not ...

A 529 plan can be a great way to save for college, giving you tax-free investment growth and withdrawals for qualified expenses, but getting your money out when those tuition bills start rolling ...

Tax-free 529 account withdrawals are allowed to pay tuition at a trade or vocational school, or for other qualifying career training programs. What if your beneficiary receives financial aid, ...

Consumer Reports has no financial relationship with advertisers on this site. Consumer Reports has no financial relationship with advertisers on this site. Parents who’ve been saving for college ...

A 529 plan is a tax-advantaged account you can use to pay a wide range of education expenses, with plans sponsored by every state and the District of Columbia. They allow tax-free withdrawals for ...