529, withdraw full amount but make payments

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mamboking
Posts: 1
Joined: Wed Dec 05, 2018 2:15 pm

529, withdraw full amount but make payments

Post by mamboking » Wed Dec 05, 2018 2:24 pm

I've got some personal loans I'd like to pay off and I was wondering if, starting in January, I could withdraw the full amount for the rest of the school year from my kids' 529 plans. I'd then use that money to pay off the loans while continuing to make the monthly payments I already have setup with the school (this is a religous high school, not college).

Is this allowed or do withdrawals have to match up 1 for 1 with payments?

Thanks,
Kevin
Thanks, | Kevin

Spirit Rider
Posts: 9168
Joined: Fri Mar 02, 2007 2:39 pm

Re: 529, withdraw full amount but make payments

Post by Spirit Rider » Wed Dec 05, 2018 9:01 pm

The withdrawals and qualified educational expenses are only matched on a yearly basis.

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