like scholarships, for the most part money within a 529 plan will be taxed and penalized if it’s withdrawn for anything other than qualified education expenses. And if you received a state income tax deduction for your contributions, you may have to pay that back as well.
This is worth considering since there are a lot potential reasons that you might want to use this money for other goals:
Your child may go to a lower cost school than you anticipated.
Your child may not want to go to school at all.
The trend could reverse and college could become less expensive in the future.
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