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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Diffferent poster: but if i were to change the 529 to me, enroll in a class, company pays for class, i presume i can withdraw equivalent amount of class tuition from 529 tax and penalty free.[/quote]

No, not if the employer is paying the tuition. Are you stupid?[/quote]

Seriously.

The rule is no double dipping.  If your employer pays, that means you didn't pay.  So you do not have any qualifying expenses.

To use the funds in 529s you have to have expenses.[/quote]

Actually you can withdraw without penalty then - if a kid receives  scholarship or ROTC, parent can withdraw amount of scholarship or ROTC award from 529 plan without penalty.  I presume that was what the poster was referring to. So in that case, money withdrawn can be used to pay for child’s loan.[/quote]

If your employer pays, it is not a scholarship. You pay the penalty.

You are right for scholarships that you pay no penalty. You still pay tax on growth though. Just no penalty. And yeah, sure. You can pay for a loan, a new roof, fancy clothes. You still pay tax on growth. Just not the 10%. Not sure why the funds in this case weren't used for expenses, in which case there wouldn't be loans. [/quote]

Are you sure? 
From Pub 970 Chapter 87, "The 10% additional tax doesn't apply to the following distributions...Employer-provided educational assistance (see chapter[/quote]

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