The big advantage of 529 plans is that qualified withdrawals are always federal-income-taxfree and usually state-income-tax-free too. What you may not know is that not all 529 withdrawals are tax-free qualified withdrawals, even in years when you have heavy college costs. This article explains what we think are the six most important things to know about 529 withdrawals:<\/p>\n
Point No. 1: You Usually Have Several Payment Options
\nPoint No. 2: Watch Out for Withdrawals from 529 Accounts Funded with Custodial Account Money
\nPoint No. 3: The IRS Knows about Withdrawals
\nPoint No. 4: Withdrawals May Be Taxable Even in Years When Substantial College Costs Are Incurred
\nPoint No. 5: When You Keep a Withdrawal, There Are Tax Consequences
\nPoint No. 6: Withdrawals Not Used for Education Can Also Be Hit with a 10 Percent Penalty Tax<\/p>\n
Read more at: https:\/\/www.bradfordtaxinstitute.com\/Tools\/College-Premium.pdf<\/p>\n","protected":false},"excerpt":{"rendered":"
The big advantage of 529 plans is that qualified withdrawals are always federal-income-taxfree and usually state-income-tax-free too. What you may not know is that not all 529 withdrawals are tax-free qualified withdrawals, even in years when you have heavy college costs. This article explains what we think are the six most important things to know … <\/p>\n