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If 529 money is withdrawn for non-education spending, what extra federal charge applies to the earnings?

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  1. A 2% federal fee
  2. A 25% federal fee
  3. A 10% federal tax penalty

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References

  1. Investor.gov: Introduction to 529 Plans www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/introduction-529-plans-investor-bulletin Checked 2026-10-10.

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