Use of 529/college savings plan money

Dadandgrad

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My parents opened a 529 college savings plan for our son and have contributed to it over the years. It has grown nicely (well it was nicer before the recession!) and will pay for a portion of his college education. Son has accepted an offer of appointment to USAFA. I'm planning on meeting with a financial advisor to understand what we can do legally with the funds. It is my understanding that we can use these funds to cover some items like travel to/from USAFA, computers, etc. I'm looking for feedback from anyone else who has been through a situation like this. Guess this is a good problem to have!
 
You can legally use the funds for any purpose; but if it's not qualified, (ie, not educational) you pay a tax penalty on withdrawal.
I don't know how the academy process it, but the Section 529 of the Internal Revenue Code allows the funds to be used for tuition, room, board, fees, books, supplies and equipment required for attendance at a qualified higher education institution. Other threads have said that the SAs are capable of handling scholarship funds in lieu of the equipment loans, so it should be possible. The funds can also be rolled over without any tax recognition for use by a sibling, first cousin, or certain other relatives.

Here's a good explanation:http://www.savingforcollege.com/bankrate_articles/article.php?article_id=8
 
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Wording can be a bit confusing...according to the rules for the GA 529 Plan, one of the options is a taxable withdrawl due to attendance at an SA, in which earnings subject to applicable fed/state income tax, but not to the 10% additional fed tax as an unqualified withdrawl would. However, I don't know if one would have to do this if accepted to an SA, or if you could count the initial SA fees as "costs of...supplies, and equipment required for...attendance"(qualified withdrawl).
 
Well, the money from the savings plan could be used to pay off the loan, at least.
 
wondering too.

I also have the same question and would love to hear what you find out!




My parents opened a 529 college savings plan for our son and have contributed to it over the years. It has grown nicely (well it was nicer before the recession!) and will pay for a portion of his college education. Son has accepted an offer of appointment to USAFA. I'm planning on meeting with a financial advisor to understand what we can do legally with the funds. It is my understanding that we can use these funds to cover some items like travel to/from USAFA, computers, etc. I'm looking for feedback from anyone else who has been through a situation like this. Guess this is a good problem to have!
 
Well, the money from the savings plan could be used to pay off the loan, at least.

What loan does this refer to? The uniforms, etc. that you are charged for up front? How would you arrange to do this?
 
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