What can I do with any remaining amount in the 529 plan I set aside for my grandson?
I saved enough for him to follow our family legacy and attend an Ivy League school, instead he went to a state school and didn't use all of the money in the 529.
Answers | 3
1) He can use the funds for graduate school or 2) you can transfer the account to another family member - including yourself - for college. Lastly, you can cash the account out - any gain exceeding investment in the account will be taxed (on your tax return) and the gain will also be subject to a 10% penalty tax. Depending on the plan, you may have a number of years before you have to do anything - if there is the possibility your grandson will go on to graduate school (but isn't sure now) or you think you might have another grandchild to whom the account could be transferred, you could leave the account open and re-evaluate at a later date. Best of luck!
If so, how do you prove the family relationship when you withdraw?