A percentage of the money in the college savings plan has been taxed. If I withdraw money for a non-qualified expense,
A perecentage of the money in my college savings plan was taxed when placed in the account. If I withdrawl money for a non-qualified expense, do I have to pay tax again on that money?
Thank you for asking this question about 529 qualified expenses and penalties.
yes there are penalties for taking out money from these accounts for non-qualified expenses. And many people don't realize that they can over withdraw until they combine scholarship payments and 529 account withdrawals on the Education Credit. There's a lot on information explained here
I hope this answers your question about 529 account qualified expenses and penalties.
have a great day!
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