Five common errors to avoid and two big factors to consider.
Most families that start 529 college savings plans have done their "homework" about these programs. Missteps are made, though, often with the distribution of 529 plan assets. Here are some of the major gaffes and the major factors anyone should think about before enrolling.
Assuming a university will withdraw 529 plan assets for you. When the time comes, you have to tell the 529 plan that you need the money and specify the payee. Typically, a 529 program offers you either a check written out to you, to your student, or a payment made directly from the 529 plan to the university. There are two big reasons why a check made payable to the student may be the best option.