Comments on: How To Use A 529 Plan If Your Child Doesn’t Go To College https://thecollegeinvestor.com/33946/how-to-avoid-the-529-plan-withdrawal-penalty/ Student Loans, Investing, Building Wealth Sun, 04 Jun 2023 18:13:03 +0000 hourly 1 By: Robert Farrington https://thecollegeinvestor.com/33946/how-to-avoid-the-529-plan-withdrawal-penalty/#comment-475615 Thu, 19 Jan 2023 16:44:50 +0000 https://thecollegeinvestor.com/?p=33946#comment-475615 In reply to Anne.

Correct. You only pay a penalty on any gains you made.

]]> By: Anne https://thecollegeinvestor.com/33946/how-to-avoid-the-529-plan-withdrawal-penalty/#comment-475607 Thu, 19 Jan 2023 00:59:36 +0000 https://thecollegeinvestor.com/?p=33946#comment-475607 What if my 529 actually has a loss when I take out the money? Say I invested $1000 with target 2055 fund and now it’s only worth $800. When I take it out for non qualified withdrawal, I incurred $200 loss and $0 gain. Does this mean I don’t pay any withdrawal penalty?

]]> By: The Financial Engineer https://thecollegeinvestor.com/33946/how-to-avoid-the-529-plan-withdrawal-penalty/#comment-442927 Sat, 20 Jun 2020 13:00:13 +0000 https://thecollegeinvestor.com/?p=33946#comment-442927 Great ideas provided here. I will definitely note all of the options. I like the idea of providing it to grandchildren if that is the case. Could you imagine the amount with created from compound interest?!

It would be a great idea to allow you to loan to other students (non-family) that would be required to pay back the loan with interest. Ya, won’t happen…

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