SMU offers a prepay plan for the ~50k/yr tuition. Pay 200k up front and no risk of inflation costs.
Client has 150k in a Texas 529 and plenty of money outside the 529 to pay the bills.
So year one he pays the 200k up front for 4 year tuiton and the 22k balance for room, board, fees.
Can he count as tax free the full 150k he takes out for the prepay day one?