Withdrawals from a 529 plan are tax-free to the extent your child (or other . This happens because of the coordination rules (aka anti-double-dipping .

If you also take withdrawals from a 529 plan in the same year for the same . tax law says that the gift rules should be similar to those for 529 plans. .

This article answers questions about withdrawing college savings for non .

And there's a favorable twist: Under special rules unique to 529 plans, . Alabama, requires that the withdrawal be made from an in-state 529 plan. .

Mar 5, 2003 . If we open a 529 plan, whether it's in our state of residence or not, can we use . If you withdraw the money for any reason other than to pay for educational . for more information about the tax rules and penalties. .

Overview of the withdrawal rules for a Section 529 Savings Plans, as well as the treatment of unused funds.

Q. Are withdrawals from a 529 plan exempt from state income tax? . state to determine the specific state tax rules that apply to investing in a 529 plan. .

The most common 529 plan rules are the ones that deal with the 529 contribution limits, the withdrawal rules and the penalties that an individual will have .

Dec 3, 2010 . However, there are a lot of rules associated with 529 plans. If you are currently making withdrawals to cover the expenses of a.

Some states' 529 plan rules allow taxpayers to receive a tax deduction for contributions, but there may be certain requirements. .

Jan 16, 2007 . As long as you use the money within the 529 plan for college expenses, . If you withdraw funds from your 529 account that a scholarship . If you believe a comment is abusive or otherwise violates our Fool's Rules, .

Overview of the withdrawal rules for a Section 529 Prepaid Tuition plan, as well as the treatment of unused funds.

May 8, 2006 . Rules for money leftover from college 529 plan . Rather, each withdrawal from the 529 plan contains a pro-rata portion of earnings and .

To qualify as a 529 plan under federal rules, a state program must not accept contributions in excess of the anticipated cost of a beneficiary's qualified .

Contributions to a 529 college savings plan are not deductible for federal income tax . The applicable federal, state, and local tax rules are complex, . which a rollover out to another state's 529 plan is made or a withdrawal from .

These are the 529 plan withdrawal rules: In the last decade, more money flows . Withdrawal procedures are another important aspect of the 529 Plan Rules. .

In fact, even if you like the 529 plan you may still decide to contribute the first $2000 of savings . This means that some portion of the ESA withdrawal can become taxable. . Income, estate, and gift tax rules · Changes to the ESA .

Feb 23, 2011 . The most important 529 plan rules deal with contribution amounts, annual income, withdrawal procedures and allowances, taxes, and qualified .

Where can 529 college savings plan withdrawals be used? Withdrawals from 529 savings plans can be used to pay for qualified higher education expenses at any .

529 Tax Deduction Rules. The general misconception that most people have towards the 529 plan is . Withdrawals from the 529 plans are not taxable as well. .

When you make a withdrawal from a mutual fund IRA, you withdraw shares and . Special accelerated gifting rules apply to 529 College Savings Plan accounts. .

Section 529 plans allow individuals to invest in a predetermined pool of stock . Pay particular attention to rules regarding transfers, early withdrawals, .

Jan 17, 2009 . The short answer: You shouldn't delay such withdrawals beyond 2009. A 529 plan lets individuals set up tax-advantaged investment accounts .

State-sponsored college savings plans (or Section 529 plans, after the .

All 529 Plans must meet the Section 529 qualification rules. . If a 529 plan withdrawal occurs in the same calendar year as receipt of a scholarship, .

Qualified tuition programs (QTPs) are also called “529 plans.” States may .

U.S. Savings Bonds - Withdrawal Rules and Treatment of Unused Funds for U.S. Section 529 Savings Plans - Withdrawal Rules and Treatment of Unused Funds . .

Under the federal rules governing 529 plans, you can change the way your . Withdrawals can be done online, by phone, or by submitting a Withdrawal Request .

Aug 6, 2007 . Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, so long as you use withdrawals for eligible college .

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The 529 college savings plan has withdrawal benefits contingent upon schooling. . Check with your individual plan rules. 3. Time your withdrawals so that .

A 529 plan is a tax-advantaged investment vehicle in the United States . However, if a "non-qualified" withdrawal is made, the earnings portion will be . such as 401K plans, IRS rules allow only a single exchange/reallocation of .

the results list of search 529 plan withdrawal rules . Section 529 Savings Plans - Withdrawal Rules and Treatment of . .

529 Plan Withdrawal Rules. The college 529 savings plan is a type of savings .

To qualify as a 529 plan under federal rules, a state program must not accept . . Note: A 529 plan must have a way to make sure that a withdrawal is really .

The availability of cash withdrawals from an employer-sponsored retirement plan is generally determined by your employer's plan rules. .

Oct 1, 2005 . If you withdraw money from either type of 529 plan, and that . Each plan has different rules and offers unique investments and pricing. .

Mar 23, 2011 . To qualify as a 529 plan under federal rules, a state program must . Note: A 529 plan must have a way to make sure that a withdrawal is .

Apr 15, 2010 . Federal tax-free withdrawals – If the money is used for college, your withdrawals . Check your states rules on 529 College Savings Plans. .

Some of the other rules that apply to contributions include: . Plan Withdrawals - 529 plans have no age limit on account beneficiaries. .

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May 28, 2011 . Ask friends and family members who are currently contributing to a 529 plan for advice about making a well-informed decision. .

There are rules in effect to “recover” the deduction if non-qualified withdrawals are made from 529 plans. Non-qualified withdrawals of post-2005 .

Jan 25, 2010 . How you withdraw money from a 529 plan depends on the beneficiary. Here's what to consider.

Jan 14, 2010 . For a general discussion of gift tax rules, see IRS Publication 950, . But the benefit of a 529 plan comes with the tax-free withdrawal of .

Withdrawal procedures are another important aspect of the 529 Plan Rules. Anyone who invests in the 529 plan should be aware that if the rules for the .

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Mar 28, 2011 . Section 529 College Savings Plan MSRB Rule Compliance Checklist. Section 529 Savings Plans - Withdrawal Rules and Treatment of . .

Aug 12, 2007 . The Missouri 529 plan which I use, requires that I keep my own documentation . I would check the specifics of your 529 withdrawal guidelines. . Besides tuition, room and board what is allowed under 529 rules? .

Understanding the rules that govern contributions and withdrawals will help you take full advantage of your 529 plan. For example, both prepaid tuition .

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