How does the 529 plan work with ScholarShare?

How does the 529 plan work with ScholarShare?

ScholarShare 529 College Savings Plan. Investing in the future of your loved ones, including yourself, is important. ScholarShare, the state-administered 529 college savings plan, provides families with a tax-advantaged way to deposit after-tax contributions to save for future college expenses.

How do I withdraw my 529 plan money?

Depending on your state’s plan, there are typically several ways to withdraw your 529 plan money. For example, Scholarshare allows you to request a withdrawal online, by mailing in a form via snail mail, or by calling their call center. You can have the funds sent to the participant, the beneficiary, the school directly, or a third-party.

What is the 529 college savings plan?

ScholarShare, the state-administered 529 college savings plan, provides families with a tax-advantaged way to deposit after-tax contributions to save for future college expenses. Earnings, if any, are tax-deferred and disbursements, when used for tuition and other qualified higher education expenses, are federal and state tax-free.

What are the tax implications of non-qualified withdrawals from a 529 plan?

The earnings portion of a non-qualified withdrawal will be subject to income tax and a 10% penalty. The basis portion will never be taxed or subject to penalty because it is made up with the amount you originally contributed with after-tax dollars. Wondering how your 529 plan may impact financial aid?

FAQ: ScholarShare 529

Complete the Refund or No Amount Due Section, Line 115, of CA Form 540 to authorize Direct Deposit (Line 32 of CA Form 540 2EZ) Provide the ScholarShare 529 Routing Number (011001234) Select Checking for Type. For Account Number use a prefix of 582 + your 11 digit ScholarShare account number.

Audited over Scholarshare 529 withdrawals? – Parents Forum

Oct 08, 2009 · I received a notice from IRS saying I owed back taxes from 2007 based on my withdrawals that year from the Scholarshare 529 plans I had for my two sons. All of my withdrawals were “qualified” – that is, the money went for room and board for the students, in an amount less than the official “cost of attendance” figures the University uses..

Scholarshare Withdrawal – US Legal Forms

It only takes a couple of minutes. Follow these simple actions to get Scholarshare Withdrawal completely ready for sending: Find the form you will need in our collection of legal forms. Open the form in our online editor. Read through the guidelines to learn which details you have to include. Select the fillable fields and put the requested info.

HOW TO: Making Withdrawals – College Countdown

Aug 01, 2020 · A printed copy of the Withdrawal Request Form Otherwise, you will receive the funds by check. How to Do It 1. Download and complete the form. 2. Be sure to verify your account information is correct. 3. Select the type of withdrawal. 4. Select the amount of withdrawal. 5. Select the investment portfolios you want to withdraw the funds from. 6.

Reporting 529 Plan Withdrawals on Your Federal Tax Return

Feb 05, 2020 · 529 plan distributions used to pay for non-qualified expenses are subject to income tax and a 10% penalty on the earnings portion of the withdrawal. This includes 529 distributions used to pay for airfare and other travel costs , college application or testing fees , health insurance or room and board costs beyond the college’s cost of attendance (COA) …

Managing Your Account : ScholarShare 529

If you take a withdrawal from ScholarShare 529, sometime during the tax season you will likely receive a 1099Q for any withdrawals made the previous year. This tax document includes the total of all withdrawals you make during a given year and may be …

A Penalty-Free Way to Get 529 Money Back – Investopedia

Nov 01, 2021 · So you now have $1,000 in non-qualified expenses. If the earnings portion of your $6,000 distribution is $900, your taxes would be calculated as …

Forms & Resources – ScholarShare 529

Use this form to establish or modify Payroll Deduction if you are a University of California Employee. DOWNLOAD. Withdrawal Request Form. Use this form to request a full or partial Qualified Withdrawal, Non-Qualified Withdrawal or Indirect Rollover from your ScholarShare 529 account. DOWNLOAD.

529 Plans and your Tax Return –

Feb 01, 2022 · 529 withdrawals spent on other purchases, such as transportation costs or health insurance coverage are generally considered non-qualified. … You will have to file IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, if your contributions exceed the $15,000 annual gift tax exclusion. Keep in mind that the annual …

Whose Tax Rate Applies to a Non-Qualified 529 Plan Distribution?

Jul 29, 2020 · Distributions from a 529 plan may be paid directly to the educational institution, to the beneficiary or to the account owner. Either the account owner or the beneficiary will have to pay income tax on the earnings portion of a non-qualified distribution plus a 10% tax penalty. The person responsible for reporting the non-qualified distribution …

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