How much can you withdraw from a 529 plan?

An annual withdrawal limit of $10,000 is applied to 529 plans for K-12 tuition expenses. If you’re using 529 plan funds to pay student loan debt, there is a lifetime withdrawal limit of $10,000. No matter how much you withdraw, you have to use the money for qualified educational expenses to avoid paying income tax and a 10% penalty. 2.

How do I make a 529 withdrawal?

The hard part is over. Making a 529 plan withdrawal takes a few minutes on your computer. Just log on to your account and request a withdrawal. Most plans can send checks or electronic payments to you, your beneficiary or the school you’re funding.

Can I withdraw money from a 529 college savings plan?

A 529 college savings plan has unique benefits, including tax-deferred growth and tax-free withdrawals for qualifying expenses. However, there are penalties if money is withdrawn for non-qualifying expenses. Here’s what to know about the 529 rules and what you can do to avoid the 529 penalty for non-eligible withdrawals.