- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Coverdell ESA owners may roll funds into a 529 plan for the same beneficiary without tax consequences. The distribution is tax-free when the 529 plan is funded within 60 days.
Holders of 529 plans can withdraw up to $10,000 from their plan to pay down qualified student loans penalty-free—with conditions. The first is that the $10,000 maximum is a lifetime limit for a beneficiary and each sibling. This means a family with two children can take out a maximum of $20,000 to pay down their student loans. Secondly, plan holders cannot claim any student loan interest deductions paid with this money.
April 3, 2021
12:46 PM