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Who pays the taxes when the money is distributed from the College Savings Plan account to cover nonqualified educational expenses?

April 26, 2017account College Savings cover distributed money pays Plan taxes

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Who pays the taxes when the money is distributed from the College Savings Plan account to cover nonqualified educational expenses?

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Depending on who receives the distribution, either the beneficiary or the account holder is responsible for taxes. Also note that there is a 10% federal penalty on the earnings of all distributions for nonqualified expenses.