Overfunded 529 Plan
 
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Overfunded 529 Plan

 

Stuart Matthews
(@smatthews51)
Member Admin
Joined: 10 months ago
Posts: 183
Topic starter  

{Stuart Matthews here...I'm entering this post on behalf of an unknown user due to a website failure and recovery in which the original post was lost}.

So... I managed to somewhat overfund a 529 plan. The calculator wants to correctly pay for the college expenses (good!) and then drain the 529. In fact, I would like to leave the dollars in the 529 plan for potential future use for kids grad school or for grandchildren. The only thing I can think of is to create a fictional kid and have them attend school at some point in the future, but then the problem becomes that I only want to drain the 529, not necessarily fund a full education. I suppose that I can iterate this to plug in the correct figure, but that seems clunky.

So... is there a way to simply retain the unused dollars in the 529 for an unspecified period?


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Stuart Matthews
(@smatthews51)
Member Admin
Joined: 10 months ago
Posts: 183
Topic starter  

There are no alternatives to the trial-and-error approach in the current model of PRC. Earlier models left excess funds in the 529 account and there was no way to ever get them out, which is sort of problematic. So, the design was changed to withdraw any and all excess funds at the last graduation, but this may not always be the right approach either, as you've pointed out. I'll consider an enhancement for the 2022 model.


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