A. You have several options available if the beneficiary decides not to go to college:
- Change the beneficiary to a member of the beneficiary’s family.
- Defer the use of your savings and leave contributions invested in the account.
- Withdraw the assets in your account for a “non-qualified” distribution (a distribution not used for qualified higher education expenses). Earnings (but not contribution amounts) would be subject to state and federal tax plus a 10% federal tax penalty on the earnings. Some plans may charge additional fees or penalties on non-qualified distributions.