Not entirely an early retirement question but there are lots of smart people here.
17 years ago my mom & grandparents asked me to start a 529 for my nephew since my sister often said "why bother saving, we have to pay regardless"
She STILL don't understand the concept of compound interest, but that is another thread.
So, nephew decided to enlist in Army, off to basic training in June. He says no college plans as he is tired of school. Never been a great student, hard worker but not on the books. What do I do with the 529 funds earmarked for him? My mother and grandmother will rise from the grave & haunt me if I don't do the right thing.
My thought is to put the funds, about $40,000 towards a house once he goes that way. But that is outside the rules of a 529. Can I transfer to my own kids for their college & give nephew equivalent dollars? What is the ideal way to this without gettiing screwed by IRS & keeping the original intent in mind?
Edit: my own kids are 15 & 10 and have at least 3 years tuition $$ each sitting in my Roth. That seemed like the best way to grow the funds while still maintaining control if they decided to join a rock band & tour the world.
17 years ago my mom & grandparents asked me to start a 529 for my nephew since my sister often said "why bother saving, we have to pay regardless"
She STILL don't understand the concept of compound interest, but that is another thread.
So, nephew decided to enlist in Army, off to basic training in June. He says no college plans as he is tired of school. Never been a great student, hard worker but not on the books. What do I do with the 529 funds earmarked for him? My mother and grandmother will rise from the grave & haunt me if I don't do the right thing.
My thought is to put the funds, about $40,000 towards a house once he goes that way. But that is outside the rules of a 529. Can I transfer to my own kids for their college & give nephew equivalent dollars? What is the ideal way to this without gettiing screwed by IRS & keeping the original intent in mind?
Edit: my own kids are 15 & 10 and have at least 3 years tuition $$ each sitting in my Roth. That seemed like the best way to grow the funds while still maintaining control if they decided to join a rock band & tour the world.
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