Quote:
Originally Posted by Dunit35
That's the only downfall with the educational stuff. What do they do with the cash if they don't go to school. It looks like it's a 10% tax penalty if it's not used for school.
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Correct, plus the income tax on the earnings. If your child decides not to go to school, the 529 can be transferred to a Family member or can be used in vocational or trade schools - you can use it as well.