Tax consequences of liquidating 529 singles stds dating
In 2014 and prior years, investors may not otherwise direct the specific investments of the 529 plan account.
However, the Tax Increase Prevention Act of 2014 made changes to permit investors to directly and indirectly specify investments up to two times per calendar year, effective starting January 1, 2015.
The beneficiary of a 529 college savings plan may be changed to a member of the family of the current beneficiary.
The 529 college savings plan may be rolled over to another 529 college savings plan or prepaid tuition plan for the same beneficiary or a member of the family of the current beneficiary, but rollovers for the same beneficiary are permitted only once per 12-month period.
529 college savings plans (529 plans) are one of three types of qualified education benefits, the other types being prepaid tuition plans and Coverdell education savings accounts.
Distributions from a 529 college savings plan are tax-free if used to pay for qualified education expenses subject to certain additional restrictions.
Generally, people can contribute up to the annual gift tax exclusion (,000 in 2013, 20) to each beneficiary’s 529 plan, twice that for a married couple, without incurring gift taxes.
(Paying off student loans is not considered a qualified higher education expense under current law, even if those loans were used to pay for qualified higher education expenses.) The earnings portion of a non-qualified distribution is taxed at the beneficiary’s rate.
There is no age limit on contributions or distributions.
Funds can be used for undergraduate, graduate or professional school education at any college or university that is eligible for Title IV federal student aid.
Non-qualified distributions may be subject to a 10 percent tax penalty, except when the beneficiary dies or becomes disabled, or receives tax-free scholarship, veterans’ education assistance or employer-provided tuition assistance, among other exceptions.
529 College Savings Plans are state-sponsored programs for saving for future college expenses.
Contributions must be made in cash or cash equivalents.