If you truly have no other use for your leftover 529 plan savings, you can always take a non-qualified distribution. Your contributions will never be taxed or penalized, since they were made with after-tax dollars. Any earnings on your investments, however, will be subject to income tax as well as a 10% penalty.

What are 4 benefits to a 529 college savings plan?

529 plans offer several benefits, including:

• Federal tax breaks.
• State tax breaks.
• Age-based options.
• No Income-based restrictions.
• Prepaid tuition.
• Flexibility of use.
• A range of choices.
• The ability to change investments.

What is the penalty for not using a 529 for college?

A 529 college savings plan allows families to save money for their child’s college education in a tax-free investment account. If the money is used for anything outside of the qualified education expenses, the family must pay a tax penalty of 10% on the plan’s earnings.

Can I use my child’s 529 for myself?

Regardless of your age, you can set up a Section 529 plan for yourself to fund educational expenses now or in the future. You can use the money in a 529 plan to upgrade your skills by just taking a few classes at a qualified college or trade school, or working towards a degree or advanced certificate.

Does money in 529 grow tax-free?

529 plans offer unsurpassed income tax breaks. Although contributions are not deductible, earnings in a 529 plan grow federal tax-free and will not be taxed when the money is taken out to pay for college. This has been a huge incentive for Americans to save for college.

Can you use 529 money to buy a house?

Mortgage Payments Do Not Qualify as Room and Board Even if the student were to buy the home, they still can’t use 529 plan money to make the mortgage payments. A mortgage payment is a payment on a loan and not a payment of housing costs. As such, it is not a qualified higher education expense.

What is the best college savings plan in WV?

The Hartford SMART529 The Hartford® SMART529® College Savings Plan, offered by the West Virginia College Prepaid Tuition and Savings Program Board of Trustees, offers all the benefits of a 529 plan plus a range of investment options so you can choose the investment strategy that’s right for you.

What is the Hartford smart529 program?

The Hartford SMART529 program features a menu of age-based, static, and individual portfolio options utilizing Hartford Funds, two iShares (BlackRock) funds, one MFS fund, and a stable value portfolio managed by Invesco. Accounts can be linked to the Upromise rewards service.

What happened to the Hartford global all asset 529 portfolio?

Effective September 13, 2019, the Hartford Global All Asset 529 Portfolio was merged into the SMART529 Balanced Portfolio. Effective April 3, 2017, performance information reflects a maximum sales charge of 2.50% for all investment options.

What is the Chet 529 college savings plan?

The Connecticut Higher Education Trust (CHET) is a state-sponsored, tax-advantaged 529 college savings plan that’s helping families and individuals plan for the cost of higher education.