Skip to main content
January 29, 2024
Question

What can I do if I withdrew moony from my 529 college fun in December for January tuition.?

  • January 29, 2024
  • 2 replies
  • 0 views
No text available

2 replies

January 29, 2024

You have 60 days to return the excess funds to a 529 account.  If you miss the 60-day cutoff, or are unable to replace the funds, then the excess will be treated as an unqualified withdrawal and you’ll owe income taxes and the 10% penalty.

 

Did you have qualified expenses during 2022 that were not paid for using 529 plan funds?  Expenses that qualify include tuition, room and board, computers and software, and books and supplies.  You can consider the funds you took out to pay 2023 expenses as having been used to pay the 2022 expenses, if they qualify.  

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"