First: Congratulations! Over-funding is a good problem to have!
To your question, yes: You can withdraw the value of a scholarship regardless of whether the plan is a savings or prepaid 529 plan. If you have money leftover there are lots of articles about what you can do with the money, but it really boils down to three options:
- Withdraw the value of scholarships received
- Keep the assets in the account and use it for future education or generations (it's not going anywhere, and you never know about grad school or your own education; take a cooking class!)
- Take the money out and pay taxes on the earning plus the 10% earnings penalty. Depending on your cost basis, this might not be much, since only the earnings are taxed and penalized!
Good luck!
Brian Boswell
VP, Research & Development
This information does not constitute tax advice and is provided for informational purposes only. Please consult your tax advisor, financial advisor, local taxing authority, and/or plan provider or sponsor for more information.