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[quote=Anonymous][quote=Anonymous]My daughter will be graduating in class of 2026, we are looking ahead, How long does it take to withdraw the money from the 529 plan to pays for the semester at the school?   Is the money TAX Free or are we going to pay taxes on that in 2027 - for (2026 tax year.)[/quote]

- 529 withdrawals for the paying eligible expenses(google for details) are tax free.
- Withdraw in the same calendar year you pay for the expenses. For example, if tuition for Spring 2026 is due before Jan 10th, please wait until Jan 1 to make that payment. If you do pay before Dec 31 2025, withdraw before Dec 31 2025.
- We typically pay the tuition and whatever out of pocket and withdraw funds towards the end of the calendar year. Some people pay the directly. This gets a bit complicated when you deal with multiple payees - the school, the apartment where you rent from, bookstores, food, etc.

In your case, I'm assuming DD will graduate May/June 2026. You will likely pay tuition in Jan 2026, rent and other expenses through May 2026. You could wait until all that is done and withdraw after June 2026 (but before December 2026) or withdraw the tuition in Jan 2026 and the remainder in June 2026. If there's money left in the account after those expenses are covered, those will be taxed (and penalized) on withdrawal.[/quote]

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