{"id":114894,"date":"2024-02-22T05:48:32","date_gmt":"2024-02-22T05:48:32","guid":{"rendered":"https:\/\/namso-gen.co\/blog\/what-happens-to-money-in-a-529-if-not-used\/"},"modified":"2024-02-22T05:48:32","modified_gmt":"2024-02-22T05:48:32","slug":"what-happens-to-money-in-a-529-if-not-used","status":"publish","type":"post","link":"https:\/\/namso-gen.co\/blog\/what-happens-to-money-in-a-529-if-not-used\/","title":{"rendered":"What happens to money in a 529 if not used?"},"content":{"rendered":"

What happens to money in a 529 if not used?<\/p>\n

A 529 savings plan is a popular way for families to save for their children’s college education. But what happens to the money in a 529 if it’s not used? Many parents worry about this scenario, especially if their child decides not to attend college or receives a scholarship. <\/p>\n

If the beneficiary of a 529 savings plan does not use all the funds for qualified educational expenses, there are several options available to account holders:<\/p>\n

1. The account owner can change the beneficiary to another family member without incurring taxes or penalties.
\n2. The funds can be left in the account in case the original beneficiary decides to pursue further education or certification in the future.
\n3. The money can be used for qualified expenses at a later date, such as graduate school or continuing education courses.<\/p>\n

It’s important to note that if funds are withdrawn for anything other than qualified educational expenses, account owners may be subject to taxes and penalties on the earnings portion of the withdrawal. However, the principal contributions made to the account can be withdrawn tax-free.<\/p>\n

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