Penalty-Free Exit Strategies for Unused Funds
There are important exceptions to the 10% early withdrawal penalty, permitting non-qualified withdrawals without penalty if a beneficiary dies or becomes disabled, receives a scholarship (to the extent of that scholarship amount), or in certain other qualifying circumstances. This reduces the risk of being locked into funds with no efficient exit.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.