If you child gets a merit scholarship, how long

[Anonymous]

do you have to decide if you will withdraw that money from the 529?
Does it have to be that same calendar year?
Is it allowed to wait a few years, just to make sure merit funding doesn't disappear?

[Anonymous]

Do you mean withdraw the 529 money and use it for something other that college/grad school expenses?
We're leaving DS1's in the 529. He still has approved expenses outside of merit $ (room, board, books, computer); he needs to maintain a (3.25?) GPA for merit $$; he plans to take OChem at George Mason over the summer (not covered by merit $); we don't know if he'll go to grad school; andhe has younger sibs who we can pass the 529 $$ to.

[Anonymous]

OP, thinking of using it for things like airfare, summer tuition/board if not covered, living expenses for an internship outside of DC if needed, maybe a car senior year of college (yes, I'm over-thinking)

[Anonymous]

You can wait and use it for grad school if you want. You aren't required to draw it down at a certain point and as a PP noted you can use it for a younger kid. Probably best to use it for as may qualified expenses as possible so you don't pay the penalty though. Many of the things you listed aren't qualified expenses.

[Anonymous]

Anonymous wrote:OP, thinking of using it for things like airfare, summer tuition/board if not covered, living expenses for an internship outside of DC if needed, maybe a car senior year of college (yes, I'm over-thinking)

No college student needs a car. Save it for grad school or relocation expenses for a new apartment and job after graduation

[Anonymous]

Anonymous wrote:You can wait and use it for grad school if you want. You aren't required to draw it down at a certain point and as a PP noted you can use it for a younger kid. Probably best to use it for as may qualified expenses as possible so you don't pay the penalty though. Many of the things you listed aren't qualified expenses.

yes, but I thought you can withdraw money equal to any grants or merit scholarships without penalty, and use for other expenses
http://www.kiplinger.com/article/college/T002-C001-S001-the-529-plan-scholarship-exception.html