Articles

How to Avoid the 10% Tax Penalty on Non-Qualified Distributions

The earnings portion of a non-qualified distribution from a 529 plan is subject to income tax at the beneficiary’s rate, plus a 10 percent tax penalty. There are, however, several exceptions in which the 10 percent tax penalty does not apply, such as death or disability of the beneficiary and receipt of a qualified scholarship by the beneficiary.

Read More

Featured Articles

Check out the Hot Topics we have covered recently.

18 States Offer FDIC-Insured 529 Plan Options

18 states offer 529 plan options that are insured by the Federal Deposit Insurance Corporation (FDIC), including high yield savings accounts and bank certificates of deposit (CDs). FDIC-insured investments are suitable for families who want to preserve capital in their 529 plan without taking on excess risk.

Read more
Harvard and MIT Sue Trump Administration Over International Students

Harvard and the Massachusetts Institute of Technology (MIT) sued the Trump administration over the recent policy change that requires international students to transfer or return home if their college offers only online courses.

Read more
CollegeBacker Review: Opening a 529 Plan with CollegeBacker

Those thinking about beginning a 529 college savings plan should consider doing so through platforms designed to make this process as easy as possible. CollegeBacker, one such platform, claims to do just that. Here’s how CollegeBacker works and what you need to know.

Read more
Complete Guide to Student Loan Forgiveness

Read more
See more articles