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Is it possible to withdraw/ transfer $ from a college savings (529) to another acct w/o paying fees?

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Captain_Slow
Posts: 1677 - Karma: 24

Basically, my parents saved up 40k for my college , but its only going to cost 30 for 4 years. My parents don't know how to take it out (10% tax on nonqualified withdrawals). Would there be a way to transfer the $ to another acct, retirement acct, etc. or any other way to take the rest of the $ out without paying that 10% tax? (We would even be able to prove that its not going to cost 40k for the 4 years of college I am attending). Any legit ideas?
Oct 14 2010 9:06PM
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Captain_Slow
Posts: 1677 - Karma: 24
hmmmmm
Oct 14 2010 9:11PM
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Half-Blood
Posts: 1770 - Karma: 385
I was going to say this but in a much nicer way.
Oct 14 2010 9:13PM
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dreadyboy
Posts: 2306 - Karma: 34
this, or just spend the 10g's on an epic party
Oct 14 2010 9:13PM
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Captain_Slow
Posts: 1677 - Karma: 24
how about im going to tomorrow , i just wanted any opinions cause the back isnt gonna tell me how to get around it. i asked a question, if you arent gonna answer it then stfu
Oct 14 2010 11:09PM
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COskier
Posts: 1066 - Karma: 131
wtf college is $7500 per year? Scholarship? Also^, what they said. But you would probably not, just have to pay taxes.
Oct 14 2010 11:25PM
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paige.
Posts: 1932 - Karma: 926
You can try and just get the money out for things that aren't specifically school related. I remember being told that I would be able to use the college money to buy a car under the claim that I would need the car to drive to school.

And the bank wants to be able to hold onto your money as long as possible so you may be able to negotiate transfer to an RRSP or something- instead of removing it in the next couple years it means they get it for 40+ years so it benefits them as well as you
Oct 14 2010 11:36PM
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vandersteeze
Posts: 2650 - Karma: 1,511
Um must be in an investment acc and then your gonna have to pay the capital gains tax no matter what.













By the way I dont know fucking shit about anything
Oct 14 2010 11:42PM
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