Hey all,
I'm in my senior year of college and my parents and I are discussing what to do with my 529 fund. We estimate ~$20-30k in there currently. I received a scholarship that covered about 90% of my tuition, and I've lived at home up until corona(but I pay for my apartment with internship income). We were able to cover the costs out of pocket so have not touched the 529. I'm considering grad school but my company will reimburse me for it, and for my field that's pretty common. I wouldn't consider grad school unless I received a fellowship or some other form of tuition payment from the University or a company.
So, what should I do with it? My initial thoughts are one of two things: invest in an IRA, or a down payment on a house. Anything else I should consider?
I read that we can withdraw tax-free up to a certain amount in tuition. If my 529 has less in it than my tuition would have been worth, this means we can take out the whole thing without the 10% tax?
Am I able to take it out on my own, as the sole beneficiary? Or do my parents have to take it out and transfer it to me?
My other question is about my little brother. He's a freshman and received the same scholarship that I have. However, he has no interest in continuing college after this semester. Are we able to withdraw all the money now while he has his scholarship? Or could it be transferred to me? He has roughly the same amount that I do, and we're trying to get the most money from it.
Thanks for any info! I'll answer any questions as fast as I can!
Submitted November 14, 2020 at 09:34PM by Mousifer https://ift.tt/2K4q39T
