I have 2 college age children. Each has a Utah 529 and a Vanguard Coverdell. College costs are lower than expected and investment performance has exceeded my expectations.
After they both graduate, they will each have about $90,000 left over, for a total of $180,000. I will not need this money for retirement, so I'm thinking about various options to avoid penalties and taxes.
I understand that, at some point, I will be forced to liquidate the Coverdell (maybe 10 years after college??). Is this true? If so, should I exhaust the Coverdells and make sure the remaining $90,000 is in the 529 Plans?
Does a 529 require me to withdraw at some point, or can the account just sit and grow for decades, maybe to be used by grandchildren someday?
Any other strategies or suggestions would be appreciated. Thank you.
Vanguard investor since 1984.