I have some cash sitting on the sidelines. My plan, in case the market tanks by another 10% is to dump 6 figure money into my kid's 529 plan. Just put everything in S & P 500.
And when the market recovers, I will take my original investment out.
Is that a good idea or will I attract any penalties or taxes? My understanding of early withdrawal rules is that they only apply for “gains”.
Is my plan solid or are there any loopholes in it?
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