Can I use money from both my education savings bonds and a 529 college savings plan in the same year?
Yes, but you cannot withdraw more than the total of all qualified expenses without facing tax consequences. For example, if you have $10,000 in tuition and fees, you can withdraw $5,000 from your 529 account and redeem $5,000 in education savings bonds to pay the expenses without tax consequences. If you withdraw $5,000 from one and $7,000 from the other, you ll owe taxes on $2,000 and may face a penalty.
Related Questions
- Can I contribute to a DC College Savings Plan account and another education savings account, such as a Coverdell Education Savings Account, in the same year?
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- Can I use money from both my education savings bonds and a 529 college savings plan in the same year?
