529 plan for secondary education

BelknapPoint
Fri, 31 Aug 2018 14:53:36 +0000

I did want to find out about 2018 as her private school fees at the International school she’s attending in Barcelona are high, so any payments we can make tax free would help.

Even if you use the 529 funds for a non-qualified purpose, only the earnings portion of any distribution is subject to income tax (plus a 10% additional tax, unless an exception applies). If there hasn’t been much growth, there won’t be much (if any) tax owed, especially if the distribution from the 529 account is made payable to your daughter and she has no or little other taxable income.