What if my child (the Designated Beneficiary) does not go to college, or if the account assets exceed the Beneficiarys college costs?
You can use the funds for the Designated Beneficiary’s graduate or professional school expenses, designate a new beneficiary who is a member of the Designated Beneficiary’s family or, subject to the imposition of federal income taxes and penalty, close the Account by withdrawing all the funds. You also may leave the Account open — indefinitely — until you determine the proper course of action. Note that the normal 10% federal penalty and tax on the earnings withdrawn and the Obligation to add the deductions taken back into your Oklahoma taxable income is not assessed if you terminate the account because the beneficiary has died or is disabled, or if you withdraw funds not needed for college because the beneficiary has received a scholarship equal to or less than the amounts withdrawn.
Related Questions
- What if my child (the Designated Beneficiary) does not go to college, or if the account assets exceed the Beneficiarys college costs?
- What if the child designated as beneficiary of the Account does not continue their education?
- How long before the money will appear in the designated account or be paid to my beneficiary?
