Each of our remaining kids have a 529. In the event their are funds left over after the first son graduates can we apply that remaining balance to our other son even though that 529 is not in his name?

TIA?

Yup.

There are some rules on the 529 to Roth conversion.

You also have two other options.

1. Just keep it as part of your estate as you can pass it to another family member such as grandchildren.
2. Cash it out. You pay tax on the gain and a penalty, but you still deferred tax on the gains for a long time.

I have my oldest starting college Fall 24, I have 529's for her and 2 younger kids. I have no idea how to withdraw and "prove" expenses - I have some research to do.

I have read that you can roll leftover to younger kids, or even grandkids, but you can also take money back yourself with a penalty.

Great question but I have always just assumed you need to write checks or transfer payment to the institution directly from the account to avoid any penalties, etc....

Just keep the receipt when you pay it and submit that with your taxes to make sure there are no tax or penalty issues.

I transfer the funds to my account, my kids pay the bill, and I give them the money. Never an issue.

12th Man Ag said:

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Just keep the receipt when you pay it and submit that with your taxes to make sure there are no tax or penalty issues.

I transfer the funds to my account, my kids pay the bill, and I give them the money. Never an issue.

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Is this a reply to the 529 payout/withdrawal question I have?

You transfer from 529 to your banking account then give your kids the money for the bills, keeping receipts if you are questioned?

I sadly have never looked in detail at the process, or it was so long ago (when I set up the accounts) that I've forgotten. I was thinking I'd have to prove the validity of each expense before even being allowed to withdraw without penalty, so a continual submitting of receipts and statements just to withdraw 529 money throughout the school year.

Complete Idiot said:

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12th Man Ag said:

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Just keep the receipt when you pay it and submit that with your taxes to make sure there are no tax or penalty issues.

I transfer the funds to my account, my kids pay the bill, and I give them the money. Never an issue.

---

Is this a reply to the 529 payout/withdrawal question I have?

You transfer from 529 to your banking account then give your kids the money for the bills, keeping receipts if you are questioned?

I sadly have never looked in detail at the process, or it was so long ago (when I set up the accounts) that I've forgotten. I was thinking I'd have to prove the validity of each expense before even being allowed to withdraw without penalty, so a continual submitting of receipts and statements just to withdraw 529 money throughout the school year.

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I just call my advisor and tell them how much we need. I ask for the amount of the bill from TAMU, my kids pay the bill, and once I have the money, I send it to their account.

It's pretty easy and you do not have to pay the institution directly for it to count. We set our son up with an account strictly for paying "educational expenses". I transfer money from the 529 into that account and then he spends accordingly mostly with debt card.

It's job to manage funds and be sure it's an approved expense. The account makes verifying easy in the event of an IRS question or audit. Everything is there for electronic retrieval and he keeps receipts.