The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: 529 withdrawals Date:  6/6/2009  4:49 PM
Author:  TMFPMarti Number:  106220 of 127753

Am I correct in thinking that no federal taxes or 10% penalties are due on the money that was contributed? Only on the earnings from that money? So that if there are no earnings, then no taxes or penalties are due?

Correct. See Chapter 8 of Pub 970 for the details. If the state gave some sort of tax break on the contributions you'll need to check those rules also.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us