How can I use the funds in my CollegeAmerica account?
You can use the assets in your CollegeAmerica account to pay for the beneficiary s qualified higher education expenses. Earnings withdrawn for any use other than qualified higher education expenses are subject to federal income tax and a 10% federal tax penalty. However, a withdrawal on account of the beneficiary s death, disability or receipt of a scholarship (to the extent of the scholarship award) is subject to federal income tax but no federal tax penalty.
You can use the assets in your CollegeAmerica account to pay for the beneficiary’s qualified higher education expenses. Earnings withdrawn for any use other than qualified higher education expenses are subject to federal income tax and a 10% federal tax penalty. However, a withdrawal on account of the beneficiary’s death, disability or receipt of a scholarship (to the extent of the scholarship award) is subject to federal income tax but no federal tax penalty.
