Take a 529 Plan Distribution before December 31st if you need to match 2016 expense with distributions taken

Take a 529 College Plan Distribution before the end of the year if you have College Expenses that you have not reimbursed yourself for yet.

Your 529 College Savings Plan is a great way to save for and then pay for college, but the distributions from your 529 Plan need to happen in the same calendar year as you have qualified education expenses.

We have had clients in the past take a distribution a year or more after they have incurred the education expenses for a child and the distribution then has a taxable portion because there are not enough qualified education expense available in the year the distribution was taken.

If you are eligible for any of the Education Credits, then make sure you are out-of-pocket enough expense to claim the credit, BUT if you need to take a 529 Plan distribution for expenses incurred in 2016, take it before he end of the year.


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