The simple answer is: No, you won’t lose your money. The funds in a 529 plan can be used in a number of other ways if your beneficiary decides not to pursue higher education.

What if my child gets a full ride 529?

You don’t lose all or even most of your savings. It’s a myth that you’ll lost your 529 plan if the child wins a scholarship. A 529 plan offers tax-free earnings and tax-free withdrawals as long as the money is used to pay for qualified education expenses.

Can 529 be used for other family members?

529 education savings plan accounts can be transferred from one beneficiary to another eligible member of the family or rolled over into other 529 accounts for the same beneficiary or an eligible family member.

Can a 529 plan be used for high school?

If your child reaches high school, and doesn’t look like they’ll need every dollar in your 529 plan, it would make sense to use the funds for a private secondary education (if you’re already incurring the expense). Just remember, you can also transfer funds to another 529 beneficiary (such as a sibling) without incurring any penalties.

What happens if I open a 529 account for my son?

You opened the 529 for the benefit of your son, but the account belongs to you and you have the right to change the beneficiary. As long as the new beneficiary is a family member—a sibling, first cousin, grandparent, aunt, uncle or even yourself—the money can be used for qualified education expenses…

How much can a parent withdraw from a 529 plan?

Now parents can withdraw up to $10,000 per year to pay for private primary and secondary education tuition. This is a big change to 529 plans and changes a lot about what counts as a qualified 529 plan expense. Should you take advantage of this new tax provision? We’ll explain how it works, and when you might want to take advantage.

Where can I use my 529 savings account?

Where you can use 529 assets. Most people don’t realize that 529 assets can be used at any eligible institution of higher education. That includes not only four-year colleges and universities, but also qualifying two-year associate degree programs, trade schools and vocational schools—both at home and abroad.