What can I do with unused or excess funds in my account?
If you end up with excess funds saved in your Oregon College Savings Plan account, you have a few options.
- You can always transfer your excess funds to a different beneficiary penalty-free (so long as they are considered a “member of the family”).
- You can hold on to the funds to use for a beneficiary in the future (possibly a grandchild) or even for yourself at a later time, also penalty-free.
- If your beneficiary gets a scholarship, resulting in you having excess funds in your account, you can withdraw up to the amount of the scholarship without a penalty or additional tax, but you will have to pay income tax on the earnings.
- And as a last resort, you can always withdraw your remaining funds as a non-qualified withdrawal, but the earnings portion (not the amount you contributed) of a non-qualified withdrawal typically is subject to federal income tax, and an additional 10% federal penalty tax.