I have two NY State 529 NY State Tax Deferred College Savings Accounts. One is in my name and my son is the beneficiary. The other is in my spouse’s name and my daughter is the beneficiary.
Question: Can we make withdrawals from the account for which my daughter is the beneficiary and use those funds to pay for eligible college expense for my son? I know the administrator, Vangaurd, will make the requested distribution to us without question. But I just want to make sure that I am ok doing this as long as we track and report the spending accurately.
Thank you in advance for your reply. Please check the appropriate box:
[ ] Yes, we can make the withdrawal as long as we make sure it is tracked and reportedly accurately.
[ ] No, we should NOT make the withdrawal. We would need to first transfer the funds to the account that is being used for the beneficiary who is using the funds.
Question regarding NY State 529 College Savings Plan
Moderator: Mark T Serbinski CA CPA
Given the season, I'll cut you a break:
NO, you cannot take funds from one child's 529 to pay qualified expenses of another child.
You CAN, however, either change the beneficiary of a plan, or you can roll over funds from one child's plan to another child's plan without penalty.
Your fundco can tell you how often you can change beneficiaries.
NO, you cannot take funds from one child's 529 to pay qualified expenses of another child.
You CAN, however, either change the beneficiary of a plan, or you can roll over funds from one child's plan to another child's plan without penalty.
Your fundco can tell you how often you can change beneficiaries.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 