Considering withdrawring from 629, assessing penalties

Discussion in 'Taxes and Accounting' started by ggelitetrader000, Dec 29, 2018.

  1. THis year I contributed 30k toward my daughter's tuition. I think it was a bit too big contribution per years and likely incur some tax because it.
    Worst of it, we are discussing some portion of it and assessing what penalties are incurred. Various website anonymously says 10% penalty and also earnings tax.
    This one for example says, total sum in the account is earning + contribution and earning part pays tax. I understand contribution part which is what I contributed. However what is earning part? is the like capital gain earned when the account grow?
    https://finance.zacks.com/penalty-withdrawing-529-plan-1789.html

    If I withdraw, can i select to withdraw from contibution parts only? Thanks.,
     
  2. 30k per year? Jeeze sounds like she's the one taking you to the cleaners. Not the IRS
     
    gaussian likes this.
  3. Dude I'm looking forward to when my daughter goes to university, it'll be a 50% reduction in education expenses haha
     
    athlonmank8 likes this.
  4. meaning? i aint good at english
     
  5. In your previous posts, you mentioned she was 5. Just contribute less in the future.
    The contribution limit this year is 15K per individual - so I'm assuming this was a joint contribution. Otherwise you should have a chat with your custodian.
     
    murray t turtle likes this.
  6. oh yeah i learned later about 15,000 limit after contribution. I did not know about it. I just did it on impulse. Will it cause significant tax for overcontribution? Perhaps I can withdraw the over contributed limit now before next year (few days away :) ) and re-contribute in Jan?