I received a full-ride scholarship to college and graduated 2010. The money I received each year is well over the amount left in the 529 account. Elsewhere Joe Hurley says "If you can show that the beneficiary has received the benefit of tax-free scholarships in paying for college, you are allowed to claim an exception to the 10-percent penalty for non-qualified withdrawals up to the amount of those scholarships. Nowhere does the law state you cannot reach back to scholarships received in previous years."
I live in California and now want to withdraw the money for other uses. What do I need to know and do in order to avoid unnecessary fees/claim an exception?
