Many of my clients have a child heading off to college in a month or two and have asked about 529 Plan withdrawals to help cover upcoming education expenses.
Contrary to what some may think, not all withdrawals are tax-free. Therefore, it is important to understand the basics of 529 plan distributions to avoid paying unwanted federal income tax. While it can be confusing, much like venturing into a college classroom, we’ve broken it down into three simple lessons.
Child Heading Off to College Soon? 3 Important Lessons About 529 Plan Withdrawals
education , 529 plan , income , income tax , withdrawls , college , tuition
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