Don't touch the 529s, they are simply not worth the aggravation of getting an IRS letter each year! It is for this reason that I would not recommend the 529 plan to anyone since the IRS sends a letter and questions these expenses each year. The 529 are an investment that is simply not worth the trouble. Each year I would receive a notice of proposed changes and each year, I had to go and explain the ed expenses that were used as a justification for the withdrawal. It would seem to me that by now there would be a transparent way for TT to program the software so this would not occur but no, it continues to happen each year. I have solid experience in most types of investments and if I had the chance to do it again, I wouldn't go near these 529s with a 10 foot pole- just not worth all the trouble!
