529 expenses

[niccig]

https://www.savingforcollege.com/art...ith-a-529-plan
has what you can use the money for

most plans allow you to pay from your account and then move money from 529 to your account. Keep records in case there is an audit. My understanding is that audits are rare.

Plug for boggleheads.org forum for ALL KINDS of amazing financial info on college and retirement and much more

Thanks for this link. Looks like we could use the 529 to fund the projects that are a class requirement.


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[niccig]

I have the funds transferred to me and I pay the university. It's easier for me to track where the funds are and when they're deposited.

I can see that we’ll ah e to keep track of money spent. Definitely a conversation to have with DS about keeping receipts etc


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[o_mom]

https://www.savingforcollege.com/art...ith-a-529-plan
has what you can use the money for

most plans allow you to pay from your account and then move money from 529 to your account. Keep records in case there is an audit. My understanding is that audits are rare.

Plug for boggleheads.org forum for ALL KINDS of amazing financial info on college and retirement and much more

Quick note that bogleheads has one g. 🙂

[belovedgandp]

I was reading that having the money go to the beneficiary is simpler tjs go to parent and Our parent pays


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The funds that we are removing from 529 and putting in DS account match scholarship amounts. The earnings on these withdrawals is taxable and we want to keep it as clear as possible and at DS tax rate.

This is also part of the pure bribery we had with DS. He's a ridiculously responsible kid and chose the in-state school with tons of scholarship money. So the funds are his. His other choice was more than double the cost per year and no scholarships, so yes, he will be in an enviable position in a few years.

[sariana]

I have the money sent to me because sending it to the school costs extra. I have a spreadsheet to track expenditures and refunds.

[Percycat]

The funds that we are removing from 529 and putting in DS account match scholarship amounts. The earnings on these withdrawals is taxable and we want to keep it as clear as possible and at DS tax rate.

This is also part of the pure bribery we had with DS. He's a ridiculously responsible kid and chose the in-state school with tons of scholarship money. So the funds are his. His other choice was more than double the cost per year and no scholarships, so yes, he will be in an enviable position in a few years.

This is what we have done too. My husband just learned that tax laws have changed and money remaining in 529s can be convered to Roth IRAs for the student up to annual limits.... I don't know the details, but is is something we are going to research for 2023.

[hillview]

Quick note that bogleheads has one g. 

thanks corrected!

[niccig]

This is what we have done too. My husband just learned that tax laws have changed and money remaining in 529s can be convered to Roth IRAs for the student up to annual limits.... I don't know the details, but is is something we are going to research for 2023.

I’ll need to look Sth this too. Depending on where DS goes and how chi he needs for his projects, we may have a little left in his 529 account


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