Dear Bogleheads Gurus,
Quick question: I understand that if 529 money is removed for anything except education there is a 10% penalty + federal and state income tax on the gains.
Is the gain considered long term gain and taxed at 15% or the gain is taxed at regular federal income tax bracket which will usually be higher than Long Term Gain rate.
So is it
a/ 10% + Long term gain rate or
b/ 10% + Federal Income tax bracket
I believe state rate (CA) will be same in both cases.
Quick question: I understand that if 529 money is removed for anything except education there is a 10% penalty + federal and state income tax on the gains.
Is the gain considered long term gain and taxed at 15% or the gain is taxed at regular federal income tax bracket which will usually be higher than Long Term Gain rate.
So is it
a/ 10% + Long term gain rate or
b/ 10% + Federal Income tax bracket
I believe state rate (CA) will be same in both cases.
Statistics: Posted by Ledzep91 — Fri Sep 13, 2024 12:57 pm — Replies 0 — Views 25
