Quote:
Originally Posted by jpkirk
That is an excellent approach. We started late on the 529. Starting now so you get the full benefit of interest and so on is what we should have done. I like the idea of sweat equity. My wife did not really. So we pay for it all. Luckily the kid decided to go to a local state university that is not real expensive ... yet ... but is getting a great rep for STEM degrees. It takes a bight, we cinched our belts.
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How does the tax work on a 529? From what I was reading there isn't a tax penalty when withdrawn for a qualified educational institution. But if we are putting in money that has already been taxed, surely we wouldn't be again, right? That's what I need to figure out.