There are different criteria that determine if an adult can use a 529 plan to save for college. The first is whether they are the account owner or beneficiary. Generally, you must be the account owner in order to be able to take distributions from the account without penalties. For example, if you are a grandparent who wants to help pay for your grandchild's education and have them named as beneficiary on a 529 before they are born, they would not qualify as an owner of that account and therefore could not take distributions without incurring penalties.
The second criteria is age limits: generally qualifying students must be under what is called the "age 18 rule. "This rule allows distributions to be taken by a student who is under the age of 18, so long as they have not completed high school.
The third criteria is whether the student has actually enrolled in college. In order to be considered enrolled, they must have started taking credits that can eventually lead to a degree or certification from an accredited college, university or postsecondary educational institution.
The fourth and final criteria that determine eligibility for distributions without incurring penalties under Section 529 is whether the student has reached what's called the "age of majority." Age of majority refers to when someone turns 18 1/2 years old and then reaches legal adulthood.
The second criteria is age limits: generally qualifying students must be under what is called the "age 18 rule. "This rule allows distributions to be taken by a student who is under the age of 18, so long as they have not completed high school.
The third criteria is whether the student has actually enrolled in college. In order to be considered enrolled, they must have started taking credits that can eventually lead to a degree or certification from an accredited college, university or postsecondary educational institution.
The fourth and final criteria that determine eligibility for distributions without incurring penalties under Section 529 is whether the student has reached what's called the "age of majority." Age of majority refers to when someone turns 18 1/2 years old and then reaches legal adulthood.
