Series 50: Withdrawals

Withdrawals

Money from the account may be removed at any time for non-educational purposes, but the earnings will be taxed at the contributor’s ordinary income level and subject to a 10% penalty. Withdrawals of the contributions (the principal) will not be taxed and are not subject to the 10% penalty. All nonqualified withdrawals are assumed to be withdrawn on a proportional basis between earnings and principal. Withdrawals made due to the death or disability of the beneficiary, or in the amount of a scholarship received by the beneficiary, are not subject to