529 Plan Details:

Enter your state:

World's Simplest College Calculator:

How old is your child?

Find a 529 Pro:

Enter your zip code:

Enroll In a 529 Plan:

View a list of participating plans



Avoid these 529 withdrawal traps

Avoid these 529 withdrawal traps

3. Taking the money in the wrong year.

Although you will not find this rule explicitly stated anywhere in the IRS' publications or tax forms, the withdrawals you take from your 529 account must match up with the payment of qualifying expenses in the same tax year. If you withdraw the 529 money in December for a tuition bill that isn't paid until January, you risk not having enough QHEE during the year of withdrawal.

You can ensure proper matching by requesting that the distribution from the 529 plan be sent directly to the school bursar.

RELATED: Saving for college? These 6 mistakes can cost you

More Featured Articles