C. a college's cost of attendance.

The amount of money from a 529 college savings plan investment is dependent upon: A. college tuition inflation. Unanswered Questions. Form 1099-Q and Form 1098-T will list the amount of the 529 plan distribution and how much was used to pay for college tuition and fees, but it is up to the 529 plan account owner to calculate the taxable portion. When 529 plan funds are used to pay for qualified education expenses there is usually nothing to report on your federal income tax return. With this option, you’ll never need your checkbook to put money in your plan! Initial investment amount The existing fund balance or initial contribution, if any, into your 529 plan. Number of years contributions are made: The number of years you plan to make contributions to the 529 plan. You will gain some insight as to the advantages and disadvantages associated with the plans, the investment choices and options, the tax implications, and the questions to ask before investing in a 529 plan. D. the family's income level.

; Annual savings amount: The annual savings amount you plan to set aside in the 529 plan. There are no annual contribution limits for 529 plans. Families making a large 529 plan contribution should consider the annual gift tax exclusion amount and find out … B. the performance of the market in which it's invested.

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Consumer Reports explains how to withdraw money from a 529.

Definitions.

You determine the amount and better yet, you get to enjoy hands-free investing that helps prevent you from spending your money on something else. However, each 529 plan has an aggregate contribution limit, ranging from $235,000 to $529,000.

And though the amount of money flowing into 529 plans is at record levels—$328 billion (PDF) in 2018, according to the College Savings Plan Network—there’s still a lack of understanding about how the accounts work. Many plans offer an automatic investment option which allows the 529 college plan to withdraw a specified amount of money each month from your checking or savings account. This publication provides an overview of 529 plans and comparison of the two types of these plans: prepaid tuition and college savings. Withdrawing funds from a 529 isn’t as straightforward as it sounds. Parents who are counting on savings in 529 plans to pay for college this year or next could be in for an unpleasant surprise. The amount of money from a 529 college savings plan investment is dependent upon what? It's easy to put money into a 529 college savings plan, but withdrawing money from the account can be more complicated.