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#529 DISTRIBUTIONS RULES HOW TO#
#529 DISTRIBUTIONS RULES SOFTWARE#
#529 DISTRIBUTIONS RULES PLUS#
#529 DISTRIBUTIONS RULES PROFESSIONAL#

So if your child changes their mind down the road, your savings will still be available. Or you can always wait because the funds never expire, and often the choice to go to school is a delayed decision.See the Plan Description for more information and exceptions. Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings.

#529 DISTRIBUTIONS RULES PLUS#

If funds are withdrawn for a purpose other than qualified higher education expenses, the earnings portion of the withdrawal is subject to federal and state taxes plus a 10% additional federal tax on earnings (known as the “Additional Tax”).

If you just want the money back, you can withdraw the funds at any time.

You can transfer the funds to another eligible beneficiary, such as another child, a grandchild, yourself or a friend.

Up to $10,000 annually can be used toward K-12 tuition (per student).

Your 529 can be used for student loan repayment up a $10,000 lifetime limit per individual.

Your funds can be used to pay for a variety of eligible education expenses, including at any accredited college, university, apprenticeships, community college or postgraduate program in the United States-and even some schools abroad.

You’ll always have access to several options for this money: With your ScholarShare 529, you’re never locked in.

#529 DISTRIBUTIONS RULES PROFESSIONAL#

You should talk to a qualified professional about how tax provisions affect your circumstances.

For California taxpayers these withdrawals are subject to state income tax and an additional 2.5% California tax. 2Withdrawals for tuition expenses at a public, private or religious elementary, middle, or high school can be withdrawn free from federal tax.Apprenticeship programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act. If you are not a California taxpayer, these withdrawals may include recapture of tax deduction, state income tax as well as penalties. 1Withdrawals for registered apprenticeship programs and student loans can be withdrawn free from federal and California income tax.1 Review a list of qualifying expenses and the state tax treatment of withdrawals for these expenses in the Plan Description. 2 In addition, your 529 can be used for student loan repayment up a $10,000 lifetime limit per individual. 1 Up to $10,000 annually can be used toward K-12 tuition (per student). This includes public and private colleges and universities, apprenticeships, community colleges, graduate schools and professional schools. Your ScholarShare 529 funds can be used at any accredited university in the country-and even some abroad. Please see the state tax treatment of withdrawals section in the Plan Description for more information. Transfer additional/leftover funds to another eligible beneficiary such as another child, grandchild, or even yourself.Repay student loans-up to $10,000 lifetime limit per individual (including principal and interest on any qualified education loan) 1.

Apprenticeship expenses (fees, books, supplies and equipment) for programs approved by the US Department of Labor under the National Apprenticeship Act 1įunds can also be used in two other helpful ways:.

K-12 tuition–up to $10,000 annually can be used per student at a public, private or religious elementary, middle, or high school 1.

Certain additional enrollment and attendance costs for beneficiaries with special needs.

#529 DISTRIBUTIONS RULES SOFTWARE#

Computers and related technology such as internet access fees, software or printers.Fees, books, supplies and other equipment needed for enrollment and attendance.Certain room and board-related expenses.Tuition at any accredited private or public college or university, community college, technical school, graduate schools, and professional schools across the US and many abroad.Here are the wide variety of qualified education expenses that can support your child in any path they choose to take:

#529 DISTRIBUTIONS RULES HOW TO#

With ScholarShare 529, you have full control over how to use your funds.