Withdrawal Rules:
There are no taxes or penalties on withdrawals made to fund tuition for schools previously approved in a state’s program. Additionally, some states allow students to use the plan to attend private or out of state schools, but will only pay a portion of the cost equivalent to an in-state school.The Independent Section 529 Plan exists for parents who would like to prepay tuition for use at participating private schools across the country.
Treatment of Unused Funds:
If there is no longer a need for a Section 529 plan for an individual, it can be rolled over to a wide variety of other potential students including immediate family members of the original beneficiary, parents, cousins, aunts and uncles, and even in-laws!