Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
The 529 Plan Liquidity Trap
Most parents treat their five twenty-nine plan like a retirement account, assuming the money is safe and accessible. But when your child decides to skip college for a gap year or pursue an apprenticeship, that liquidity can become a major problem. In this episode, we break down the harsh reality of early withdrawal penalties versus the smarter strategy of changing beneficiaries. We look at how state tax recapture works if you pull funds out before age twenty-two and why keeping excess cash in a high-yield savings account might be cheaper than locking it into a state plan you cannot touch…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.