529 For My Student Loans?

Does anyone happen to know if I can use money that I invest in a 529 for my children to pay off my own student loans if they don't need it at a later date? I have considerable student loan debt, but I consolidated at a low interest rate. Thanks.

Can't do! You can use the money to a postsecondary school. You can transfer to various kids or relatives for school. Coverdell allows use of money to prep schools, nursury schools , more liberal.
But can't be used to pay off debt. If you cash in then 10 % penalty feds. If child dies then you can avoid penalty.
Please do check out with 529 literature.
Good luck!

The expenses need to be incurred in the same year as the 529 withdrawal is made for the 529 withdrawal to be tax/penalty-free.

Presumably, if you borrow money in January to pay qualified expenses you can withdraw money in December to pay off the loan.

But if your student loans are for earlier expenses, it can only be done if you pay the tax and penalty on the earnings.

TJ

Thank you for the information, Bob and TJ. I didn't figure it would be possible, but I thought I might get lucky. So much for that thought.

Hi, Rick,
You do have to use the money for qualified educational expenses, though--so if your kids don't use it all, and you have no other beneficiary, you have no choice but to pay the tax and penalty. In that case, why not use the money to pay off your student loans?