Cat33 - 3/13/2021 21:40
jd4930 - 3/13/2021 17:08
SilverSeeder - 3/13/2021 14:32
I would go with a 529 but make sure it can be used for either college or no college. Some are worded thst finds need to be used for education. I have a 529 for the kids that I hope to use for college but it it doesn’t work the funds can be used as wished.
Are you sure about this? Are you saying if you don't use it for college your money just disappears or.......? The way I understand it is if you dont use it for school you just have to pay tax when you withdraw it?
You guys are probably right, I must have just thought that for some reason but I thought there was a difference in word play on one for education and one for savings in 529. He stopped out few years back while planting to set it up. I’ve upped my contributions but really have t checked it’s gains/losses lately.
if it's not used, then you pay tax on the earnings, 10% penalty on the sum, then it's yours again if you withdraw it. Can also be used for vocational schools, trade schools, two year associates degrees, any secondary education. Can also change to a different beneficiary for whatever reason.
Also if the kid gets a full scholarship, then the penalties for cashing out are waived.
grandchild savings acct
