What if the beneficiary decides not to go to college or does not finish college?
A. You may leave your money in the account in the event that the beneficiary decides to attend college at a later date. You may also name another eligible family member as beneficiary on the account and use the 529 assets to pay for that person’s education. If no eligible family members can be named beneficiary, then you may choose to close the account and earnings will be subject to federal income tax and an additional 10% federal income tax, as well as state and local income taxes.
