Personal Finance (Not Investing) • 529 Payout for non-educational purposes

So, we "oversaved" in 529. We do plan on using most of the residual for next-generation (grandkids) and to fund (kid's) Roth IRAs. Still, I want to payout some excess at graduation (over and above scholarship amounts). So, this excess payout (non-educational) will be taxable. I am the owner and kid is the 529 beneficiary. I want the excess to be taxed/penalized on the kid's taxes, not mine.

Is this possible and operationally, is there anything I have to setup? I prefer to remain the 529 owner. Thanks

Statistics: Posted by ichee_marone — Fri Aug 16, 2024 7:21 am — Replies 1 — Views 120

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