<p>My D has a 529 plan for college. Can you take money out of a 529 for travel abroad without a tax penalty? For that matter, can you take money out of a 529 for travel to and from UA without a tax penalty? </p>
<p>I guess I really need to do some research on 529 plans.</p>
<p>You said it in your post … 529 plan for college.</p>
<p>It is not intended for travel expenses.</p>
<p>[529</a> plan - Wikipedia, the free encyclopedia](<a href=“http://en.wikipedia.org/wiki/529_plan]529”>529 plan - Wikipedia)</p>
<p>So we couldn’t use it for the travel portion, but what about the program portion of overseas travel? I know that she will be able to earn credit hours.</p>
<p>I would think that you could use it to pay for the course credits and housing while abroad during the summer.</p>
<p>Since your D is a NMF, she could use the $2k benefit for the travel part.</p>
<p>Is she thinking about doing a semester abroad during the SCHOOL year? If so, she can use her tuition scholarship to pay for those credits.</p>
<p>Thanks, M2K. I will have to look into this. I might open a regular savings account for her to pay for overseas stuff. I truly never thought we’d be in the position to worry about having too much in her 529 account. I think we can transfer money from a 529 to a sibling though. D has 3 younger siblings.</p>
<p>You might want to float this question over on the Financial Aid section. They have had some really great information in the past.</p>
<p>For example, they directed us to contact our 529 and confirm that we could withdraw money without penality because dds received scholarships. They were correct. This is from our 529 plan:</p>
<p>Withdraw the money for other uses. A 10% federal penalty tax on the earnings will apply if you withdraw money from an account for any reason other than to pay for qualified college expenses. Exceptions to this penalty include a withdrawal made because the beneficiary:
◦Has died or become disabled. </p>
<p>◦Received a scholarship, to the extent the withdrawal amount doesn’t exceed the scholarship amount. </p>
<p>◦Has enrolled in the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy, or the United States Merchant Marine Academy, to the extent that the amount of the withdrawal doesn’t exceed the costs of education attributable to such attendance.</p>
<p>Do check with your plan…as YMMV!</p>
<p>Thanks seekingknowledge, I will call tomorrow.</p>