[Kailyn]

So how would you handle needing to withdrawal from 529 for your kid to go to college in August? I’m all about holding, but in this particular situation we need to use it in the next 4 months.

Account is obviously down right now.

[Cica]

We moved 1/4 of the balance to money market 5 weeks ago. will use that to pay in Aug, the rest will stay for yr two and beyond and hopefully recover.

But who knows.

Another 6% dip tomorrow.

[Jessica]

For those who have a longer time in 529, choose an age adjusted one that becomes less risky as your child gets closer to college.

[Jeff]

For expenses that will occur in such a short period of time, the money ideally should be in something extremely conservative.

The account may be down from what it was a week ago but it has likely done very well over the last 15 years assuming you have been contributing to it for a while.

If you need the money for school, you can just take it out. In the future you may want to be invested in something more conservative so that you would avoid these types of problems with such a short time horizon for needing the money.

For example, invest very aggressively for a 3 year old child’s 529 but extremely conservatively for a 17 year old’s 529.

The reality is your child will use this money in a few months so I wouldn’t worry about not timing it perfectly.

Be proud of yourself for even having a 529 for your child as many kids will not have that benefit and don’t kick yourself for all the woulda coulda shoulda’s.

[Alex]

Any money needed within 5 years is typically not recommended to be invested in stock market because of risk of loss of principal

[Brian]

You can take a 529 withdrawal at anytime within the calendar year you will have qualified expenses.

You will get a tax form at end of year and during taxes they will ask about the qualified expenses to offset the withdrawal so it is tax free

[Endri]

You should have withdrawn the first years, 1 year before.

[Author]

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