![]() ![]() ![]() You can withdraw up to the amount of the scholarship from your account. The beneficiary receives a scholarship.You will need to pay taxes on any earnings, plus a 10% penalty of those earnings. Withdraw the money and use it however you like.Starting in 2024, account owners can add unused funds from a 529 account to a Roth IRA for the benefit of their student. ![]() Transfer the savings to another eligible family member, 2 such as a sibling or even yourself–you could use it for your own higher education!.It can still have the opportunity to grow tax-deferred until your child decides to attend college in the future. There is currently no time limit on when funds must be withdrawn. Leave it invested! The money you invested can stay in the account.If your child doesn’t choose to go to college (and remember, college includes trade and vocational school, two-year programs, even qualified online courses), you have some choices. You can also use up to $10,000 per year for the same beneficiary to pay for K-12 tuition at an eligible elementary or secondary school (although some states still consider K-12 tuition a non-qualified expense). A maximum of $10,000 can be withdrawn to pay for principal or interest on qualified student loans of the designated beneficiary or a sibling of the beneficiary. In addition, NextGen 529 account funds can be used to pay for fees, books, supplies, and equipment required for the participation of a beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under the National Apprenticeship Act. Qualified education expenses generally include expenses such as tuition and fees, computers, books and supplies, and room and board (for students who attend school at least half time). You can use your NextGen 529 account funds to pay for a variety of qualified education expenses 1 at eligible higher education institutions, which include four-year colleges or universities, accredited two-year associate degree programs, vocational schools, trade schools, even qualified online courses– any post-secondary schools that participate in federal financial aid programs-at home or abroad. ![]()
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