Coverdell and Full Ride

[beegees]

Hey guys -

My daughter is in her Junior year.

We have her college funds in a Coverdell however we have not used any of the funds to date given she has a full ride.

She may or may not go on the grad school.

If she doesn't use the funds during her undergrad how is this treated?

Does a 10% penalty kick in after undergrad graduation?

Thanks - Brent

[dcandmc]

The answers to your questions are in Chapter 6 of IRS Pub 970.

https://www.irs.gov/pub/irs-pdf/p970.pdf

[beegees]

Thank you dcandmc! beegees