So you’ve scrimped and saved and finally your young one is off at the learning institution of their choice. But, when that first bill comes what’s the best way to tap into ye olde 529 account? The earning on a 529 account are supposed to accrue tax free when used for appropriate higher education expenses, so you want to be sure to do this right. Nothing will ruin that empty nest faster than a visit from the tax man.
The College Money Guru (aka Joe Hurley) over at BankRate.com has an article about how to tap into your 529 funds and keep the tax man happy.
Don’t forget to pay attention to the part about why it might not be such a hot idea to have your 529 funds send directly to the school (very bottom of article).
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