My grandparents set up a 529 Plan for me and my two brothers when I was very young. My parents eventually divorced and three 529 Plans were turned over to my father. My mother placed $25,000 each into our 529 Plans when she and my dad divorced.
My father took control of the 529 Plan and now the $25,000 my mother placed into each three sons 529 Plans has been taken out by my father (on all three sons accounts- $75,000 Total).
My father is signing over all the 529 Plan Accounts over to three sons and we are curious who is responsible financially for all the money my father took out? My mother told us taxes are taken out for early withdrawal from our 529 Plans? My mother indicated we will be responsible for paying taxes on the money my father took out. Is this true? Who is responsible for early withdrawal taxes? My dad is in the process of certifying we are now responsible for the 529 Plans. Who will be legally responsible to pay taxes for early withdrawal if these accounts are officially signed over to us?
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