Lashaun took an early withdrawal of $6,200 from a college savings plan and did not use the money for qualified educational expenses. What amount of penalty will she pay on the early withdrawal?

Question

Quizplus · Accepted Answer

The penalty for early withdrawal from a college savings plan, like a 529 plan, is typically 10% of the amount withdrawn if not used for qualified educational expenses. Therefore, 10% of $6,200 is $620.

Lashaun Took an Early Withdrawal of $6,200 from a College