{"id":114890,"date":"2024-10-25T01:27:10","date_gmt":"2024-10-25T01:27:10","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/what-happens-to-529-money-if-not-used\/"},"modified":"2024-10-25T01:27:10","modified_gmt":"2024-10-25T01:27:10","slug":"what-happens-to-529-money-if-not-used","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/what-happens-to-529-money-if-not-used\/","title":{"rendered":"What happens to 529 money if not used?"},"content":{"rendered":"

As parents, we do our best to plan for our children’s futures. One popular tool for saving for education expenses is a 529 plan. These plans offer tax advantages and are a great way to set aside funds for college or other educational expenses. But what happens if the money in a 529 plan is not used? <\/p>\n

If the beneficiary of the 529 plan does not use all of the money for qualified education expenses, there are a few options available. The first option is to change the beneficiary to another qualifying family member, such as a sibling or a cousin. This way, the funds can still be used for educational expenses. Another option is to save the money for a future generation, such as a grandchild. The funds can remain in the account and continue to grow tax-free until they are needed. Finally, the account owner can withdraw the funds for non-education expenses, but they will be subject to taxes and a 10% penalty.<\/p>\n

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