Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
How 529 Plans Handle Tuition Refunds and Withdrawals
When a student drops a course, withdraws from college, or gets a scholarship, 529 plan withdrawals can get messy. In this episode, Lucas and Luna walk through the rules for returning money to a 529 plan without penalties, handling refunds that arrive after the academic year, and coordinating with scholarships and grants. They break down the concept of 'qualified expenses' and show how a refund from the school can be redeposited into the plan within 60 days to avoid income tax and the 10 percent penalty. They also discuss what happens when a student withdraws entirely and the family…
The skinny
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