Join for FREE,
and start talking with other members, weighing in on community discussions,
Also, by registering and logging in you'll see fewer ads and pesky
welcome messages (like this one!)
So is there no disadvantage to withdrawing the money to our account and then paying the school as long as it all happens in the same calendar year?
We were unable to pay the school directly, so we pay the bill from our checking account, then withdraw an identical amount from the 529. We have been told that as long as we can document that the amounts withdrawn are for education related expenses there is no tax liability. We were told we could have also withdrawn an amount to pay for books as long as it was documented but we have not done that. D is now a junior and so far this has worked fine.
Should we have the amount needed to buy the instrument transferred directly to our son rather than to our own account to minimize taxes/penalties?
Even though it's technically a "tool" related to his coursework, the cost of the instrument is going to be about the same as a year of tuition at the least expensive school he is considering, so obviously the amount we withdraw will exceed the published COA. I assume it's a non-qualified expense.