I've been asked this question a few times and I can't seem to find the answer anywhere. Even tried calling the IRS, but they don't apparently have a human being on hand to answer 529 related questions.
I have some clients who work at a university where tuition is free for their children if they go there. If they also have 529 plan assets, can they take a penalty-free withdrawal for this, similar to if the child had received a scholarship?
Also, I've been asked the same thing if someone moves abroad to a country where college is free from the state. Can they also avoid the penalty?
Any help would be appreciated. Thanks!