when must a 529 plan be liquidated

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https://www.ehtc.com/resources/news-articles/bid/113739/What-You-Need-to-Know-About-529-Plan-Withdrawals

What You Need to Know About 529 Plan Withdrawals
https://www.ehtc.com/resources/news-articles/bid/113739/What-You-Need-to-Know-About-529-Plan-Withdrawals
However, if you liquidate a 529 account that is worth less than you contributed (because of the stock market), there won’t be any withdrawn earnings, so you won’t owe anything to the IRS. You might even be able to claim a tax-saving write-off for your loss. Fact #5: Withdrawals Not Used for Education Can Be Hit with a Penalty

https://www.savingforcollege.com/intro-to-529s/what-is-the-penalty-on-an-unused-529-plan

What is the penalty on an unused 529 plan …
https://www.savingforcollege.com/intro-to-529s/what-is-the-penalty-on-an-unused-529-plan
Only the earnings portion of a non-qualified 529 plan distribution is subject to a 10% withdrawal penalty. California imposes an additional 2.5% state income tax penalty on the earnings portion of non-qualified 529 plan distributions. 529 plan distributions are allocated between the earnings portion and the basis, which is the contribution portion

https://finance.zacks.com/close-529-plan-9150.html

How to Close a 529 Plan | Finance – Zacks
https://finance.zacks.com/close-529-plan-9150.html
You can roll over your 529 plan into another without incurring taxes or penalties, and this might be another option if your initial plan isn’t performing well. You can do this once a year, and you…

https://www.collegeadvantage.com/blog/blog-detail/posts/2020/04/10/529-asset-exchanges-allowed-twice-a-year

529 Account Owners Can Exchange Assets Twice A Year
https://www.collegeadvantage.com/blog/blog-detail/posts/2020/04/10/529-asset-exchanges-allowed-twice-a-year
In order to process the transfer, the original 529 plan’s assets must be liquidated and the funds will then be invested according to your new investment option selections. What Is The Difference Between An Exchange And Allocation Exchange? An exchange is a transference of current 529 funds from one investment option to another.

https://www.thebalance.com/understanding-529-withdrawal-rules-4153124

Understanding 529 Withdrawal Rules – The Balance
https://www.thebalance.com/understanding-529-withdrawal-rules-4153124
Fidelity. How to Spend From a 529 College Plan, Accessed Nov. 12, 2019. College Savings Plan Network. 529 Plan Advantages & Benefits, Accessed Nov. 13, 2019. U.S. Securities and Exchange Commission. Investor Bulletin: 10 Questions to Consider Before Opening a 529 Account, Accessed Nov. 13, 2019. IRS.

https://ww2.mangakakalots.com/chapter/mb922806/chapter_5

PDF Estate Planning With Education Trusts and 529 Plans
media.straffordpub.com/products/estate-planning-with-education-trusts-and-529-plans-2015-06-16/presentation.pdf
Trust owned 529 Plan is an investment decision by the Trustee • Existing trust assets will need to be liquidated in order to invest in a 529 plan • Trust is named as the participant of the 529 plan • A specific person is named as the Beneficiary of the 529 plan -Trusts with multiple beneficiaries may require multiple plans Trust Owned …

https://www.investopedia.com/news/penaltyfree-way-get-529-money-back/

A Penalty-Free Way to Get 529 Money Back
https://www.investopedia.com/news/penaltyfree-way-get-529-money-back/
If your child receives a scholarship, you may withdraw that exact amount from a 529 plan and use it for anything without incurring a penalty on earnings, but you must pay taxes on the earnings.

https://www.edmit.me/blog/is-there-an-age-limit-for-529-plans

Is There an Age Limit for 529 Plans?
https://www.edmit.me/blog/is-there-an-age-limit-for-529-plans
What is the Maximum Age to Start a 529 Plan? An individual of any age can start a 529 plan, even after earning a college degree. Starting a 529 plan is a great way to save on lifelong-learning opportunities. If you don’t use all of the account funds, you can transfer money in the account to an eligible relative, such as a niece, nephew, or …

https://www.savingforcollege.com/article/reporting-529-plan-withdrawals-on-your-federal-tax-return

Reporting 529 Plan Withdrawals on Your Federal Tax Return
https://www.savingforcollege.com/article/reporting-529-plan-withdrawals-on-your-federal-tax-return
When 529 plan funds are used to pay for qualified education expenses there is usually nothing to report on your federal income tax return. Form 1099-Q and Form 1098-T will list the amount of the 529 plan distribution and how much was used to pay for college tuition and fees, but it is up to the 529 plan account owner to calculate the taxable portion.

https://www.merrilledge.com/ask/college/what-happens-to-unused-funds-in-529-account

What Can I Do With Unused 529 Funds? What Are My Options?
https://www.merrilledge.com/ask/college/what-happens-to-unused-funds-in-529-account
Do you have unused funds in a child’s 529 plan? You have two general options: transfer to another beneficiary or withdraw the funds from your 529. Learn the rules – and tax implications – for unused 529 funds.