NewlyRetired
Footballguy
My adult daughter has a fairly substantial amount of money in a 529 plan that she is the beneficiary of.
She got a scholarship to go to college that paid for the vast majority of the costs which is why there is a hefty chunk sitting in a 529 plan.
She does not plan to go to grad school. We do not have any other children to transfer it to.
We have always told her that since she earned the scholarship, all of the money in the 529 would be hers.
We know we do not have to pay a penalty upon withdrawal, but we do know we have to pay income taxes.
Ok, now with that preamble, here is my question:
When we start withdrawing the money from the 529, can we have the check made out to her name, since she is the beneficiary, or does it have to be made out in our name, since we are the owners?
She got a scholarship to go to college that paid for the vast majority of the costs which is why there is a hefty chunk sitting in a 529 plan.
She does not plan to go to grad school. We do not have any other children to transfer it to.
We have always told her that since she earned the scholarship, all of the money in the 529 would be hers.
We know we do not have to pay a penalty upon withdrawal, but we do know we have to pay income taxes.
Ok, now with that preamble, here is my question:
When we start withdrawing the money from the 529, can we have the check made out to her name, since she is the beneficiary, or does it have to be made out in our name, since we are the owners?