Do i have to pay tax on 529 plan?

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1218513

2026-08-27 13:45

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Contributions to a 529 plan are made with after-tax dollars, but the investment grows tax-free, and withdrawals for qualified education expenses are also tax-free. However, if you withdraw funds for non-qualified expenses, you may be subject to income tax on the earnings, along with a 10% penalty. Always consult a tax professional for specific advice related to your situation.

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