I've been contemplating some different strategies for taxes/estate.
BLUF: Can I withdraw non-qualified distributions from a 529 plan up to the amount that my post-9/11 GI bill is paying for my kid's college without incurring the 10% additional tax?
More to follow on the strategy, but I just wanted to verify this exception to the additional 10% penalty. It is my understanding that "veterans benefits" are similar to receiving a tax-free scholarship/fellowship etc. that allows you to withdraw that amount of money from a 529 penalty-free. I would then still be subject to income tax on the distribution, but not the 10% additional penalty, correct? Thanks everyone!
BLUF: Can I withdraw non-qualified distributions from a 529 plan up to the amount that my post-9/11 GI bill is paying for my kid's college without incurring the 10% additional tax?
More to follow on the strategy, but I just wanted to verify this exception to the additional 10% penalty. It is my understanding that "veterans benefits" are similar to receiving a tax-free scholarship/fellowship etc. that allows you to withdraw that amount of money from a 529 penalty-free. I would then still be subject to income tax on the distribution, but not the 10% additional penalty, correct? Thanks everyone!
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