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Hello, hope that is the precise sub for these questions. I’m in a really lucky place however I’m making an attempt to get all the data I can as most of the guidelines really feel very obscure. My principal questions are: Are there any choices I’m not conscious of for 529 accounts, and what’s the smartest method to go about this?
Some extremely sort members of the family put cash right into a 529 account for me a long time in the past to assist me pay for faculty. I discovered each approach doable to attenuate my tuition prices throughout undergrad, together with scholarships and dwelling at dwelling, so there may be nonetheless ~$70k left on this account. I’m starting a 2-year graduate program this fall, and the full tuition value of this system shall be about $16k. I’m hoping to take out all the 529 funds over the subsequent couple years and keep away from paying taxes/penalty if doable.
I’ve been utilizing the account to cowl tuition, books, and groceries, and I’m planning to proceed dwelling with household. I’ve saved receipts from every thing, however clearly my groceries aren’t a lot in comparison with my college’s complete room and board estimates. Drives me nuts that I can’t use the 529 for transportation prices as my commute is about to get for much longer. Can I take advantage of distributions to pay “hire” to my household so long as every thing stays throughout the college’s estimate? Can I say I’m paying our utilities? Is there anything substantial that I can use it for that I’m lacking right here? I wish to do issues by the guide, however I’m confused by the obscure tips and conflicting information I see on-line.
I noticed that there’s a brand new regulation that can permit me to roll over $35k right into a Roth IRA, in order that could possibly be useful. Is there any state of affairs during which it wouldn’t make sense to roll over as a lot as doable?
Thanks upfront for any info or recommendation.
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