A parent saving since infancy for a 5-year-old autistic daughter was told there is little harm in continuing to use a 529 plan despite uncertainty over whether she will attend a four-year college.
Kristin said the accounts can fund more than traditional college, including K-12 costs, community college and some vocational schools, keeping education options open as the child’s needs become clearer.
If college is not the path, the money may still be redirected through a beneficiary change, a rollover to a retirement account in some cases, or a transfer into an ABLE account.
She added that disability-related circumstances can sometimes waive withdrawal penalties, but noted 529 rules change often and pointed readers to IRS guidance for the latest details.
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