Tuition payment

[GroovyGeek]

<p>Just like Columbia_Student I handle all tax matters for the family. Despite what people claim, the tax code for “normal” circumstances is rather straightforward and requires simple math, and I find the IRS instructions crystal-clear.</p>

<p>When it comes to 529 plan distributions, the language is very specific and clear:</p>

<p>

Distributions from 529 plans used for qualified education expenses are tax- and penalty-free, if the amount is equal to or less than the designated beneficiary’s qualified education expenses. For distributions that are more than the individual’s qualified education expenses, the earnings may be subjected to tax and an additional 10% early-distribution penalty.

</p>

<p>I will take the chance that I can read as well as an accountant in this particular case My own 529 plan’s web site, and a few others, all offer the option of distributing directly to the school or taking the money yourself.</p>