Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
Scholarship Impact on 529 Plan Withdrawals
What happens to your 529 plan savings when your child earns a scholarship? In this episode, Lucas and Luna break down the rules: how to withdraw penalty-free up to the scholarship amount, the tax implications on earnings, and strategies for leftover funds. Learn the difference between qualified and non-qualified withdrawals, how timing matters, and why the scholarship exception isn't a free pass. Plus, we cover partial scholarships, beneficiary changes, and the interplay with other financial aid. Real examples help clarify the fine print so you can avoid costly mistakes and make the most…
The skinny
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