My son will be going to college in the fall. We have about 50K in a PA TAP Investment and 25K in a PA Guaranteed Plan. We have a 10 month installment plan the college with the first payment due May 15 (paid with personal savings). He also was awarded a 5k scholarship from the college. I am trying to understand:
- We need to withdrawal money to cover qualified expenses (529 qualified) such as room & board, tuition, books etc, but understand that all the qualified money under 529 does not equate to qualified under AOTC. How much would we need to deduct as not to impact AOTC eligibility (deduct scholarship and 4k minus non eligible expenses such as R&B)?
- What is the best method for withdrawal - investment option then guaranteed?
- Who should funds be disbursed to - us, son, or school?
- On ten month installment plan but assume college will only send a 1098 for Fall semester for 2018. How does this come into plan?
Honestly, this seems overly complex to avoid penalty and taxes. Any advise would be appreciated.