Education Savings - 529 Plan and Enlistment

So I learned that my parents have been saving for my college education through a 529 Plan. But what if I decide to enlist in the military right after high school, what happens to that 529 plan? And can it be used for a military academy too?

Choosing to enlist in the military doesn't mean your 529 plan becomes useless. You can certainly use funds from a 529 plan for a host of educational purposes beyond a traditional four-year college, including vocational and trade schools, so many educational programs provided through the military would qualify too.

If you decide to attend one of the U.S. Military Academies (like West Point or Annapolis), these schools are provided without cost to cadets beyond their commitment to serve. Thus, you wouldn't need your 529 funds for tuition, but they can potentially be used for other qualified expenses.

Should your plans shift entirely away from needing an education fund, you have a couple of other options. You can change the beneficiary of the account to another family member who plans on using it for education-expenses. The other option would be to withdraw the money for non-educational uses, but be aware this would incur income tax on the earnings as well as a 10% penalty.

Keep in mind though that individual circumstances can vary, so it would be wise to consult with a financial advisor or your plan provider to understand all the implications of using the funds in different ways.