529 plan...we can get the money back...anyone done this

[proudmom17]

We have a 529 plan...from Texas. I contacted the plan since it is time to figure out what to do with the funds. The Plan confirmed that we can 1-leave the funds in, should he opt out of USNA in the future 2-have the fund place the avg amt of Texas tuition per semester/each semester into his account at USNA or 3-have the fund refund us the avg amt of Texas tuition per semester/each semester that he remains at the USNA. The representative from The Plan said that if we chose #3 we would need a letter from USNA showing what the fees are, so as to confirm the amount they refund us does not exceed what a semesters tuition and fees are at the school. So that is my question...has anyone opted for this and who at USNA would supply me with the info I need to give to the Texas Tuition Plan.

 

[nuensis]

Information about finances should've been in the Permit to Report packet.

529 plans are usually used to knock out the ACE loan.

 

[AikiBudo]

proudmom17,

It sounds like you have one of the prepaid tuition plans rather than the typical mutual fund 529 so they need verification of tuition payments. I believe USNA can provide an estimate of tuition expense. Somewhere in the mass of paperwork you'll receive (in the PTR?) is an information sheet with details regarding the ACE loan that all the MIDS sign for when they are inducted. On it is contact information for the Disbursement Office – that is where I would start.

 

[proudmom17]

Yes it was a prepaid tuition plan. The Ace Loan paper explains if you want to place the money in that account. I am trying to figure out where the excess money would go. That loan is for $8500...but we would get close to that for just the first semester...so what would happen to the money every semester? My son would just keep adding it to his account and then he would have $50,000 in his account when he graduates? I love him, but not that much! lol

 

[AikiBudo]

It sounds like you would have to trust him to send the money back to you Do you have another child to transfer the plan to? The funds might also be available for grad school down the road - not all pre-paid plans allow this though so you need to check with your particular plan.