I know you shouldn't withdraw from accounts like this, that have penalties, but I am a doomer and love playing the mental gymnastics of what I would do in wort case scenarios so humor me.
**If I lose my job, burn through my cash while looking for a new one and don't want to take out of my 401k or retirement but have 50k in a 529 for my kids and 40k of it is contributions...and I took that 50k out in total, what would the taxes/penalties look like?**
I always thought you get taxed on whatever you take out +10%, but horsing around this morning I came across some info that said you don't get re-taxed on the contributions (or get the 10% on it) *meaning only 10k of that 50 I take out would be taxed and get hit with the 10%, is that true?*
In addition, if someone put 50k in and had 100k by the end...if their kids only ended up using 50k for college, couldn't the parent take the original 50k out and not owe any tax/fees on it at that rate?