My son got scholarship from school. We had a $3500 saved up for him. His scholarship for this year (2024) is around 5000. We plan to withdraw his 529 to help buy a car for him. Should we withdraw the 529 in our name or his name? Will there be a 10% penalty for it? Is there a state tax for it? He is a full time student and our dependent. He does not work yet.
