What happens to funds that are left in the account when the beneficiary has completed his/her education?
Any funds that are remaining in the account at the time the beneficiary has completed school, may be withdrawn or rolled into another Education Savings Account. The earnings on an unqualified withdrawal would be subject to income tax and an additional 10 percent tax. However, if the funds are rolled into a new Education Savings Account for the benefit of another qualified family member, then the funds are not subject to tax. You can change the designated beneficiary to a member of the same family as long as they are under age 30.
Related Questions
- What happens to the money left in the account after the beneficiary has completed his/her post-secondary education or if the beneficiary decides not to attend college or does not finish college?
- What happens to funds that are left in the account when the beneficiary has completed his/her education?
- What happens to funds in an account that are left and no claim for reimbursement is submitted?
