How are 529 accounts evaluated in the Cash Flow Planner?

The Cash Flow Planner analyzes both aspects of the 529 Account:  the current value of the account, which was entered in the Household Details, and any Anticipated Savings, which was entered in Plan Resources.   Any Anticipated Savings are contributed directly to a 529 Account, so the account growth and tax implications are consistent whether the entry is in the present or the future.  529 plans are grouped together in the Cash Flow Planner, rather than being treated separately.  This is done to optimize the accounts and for ease of use.  Essentially, if you have excess cash in one 529 Plan after paying for an education goal, you can use that money for another education plan if it is for a member of the family.  We did not want to put the burden on you to always determine what is done with the excess cash in every individual account, so grouping the accounts together makes things easy while accurately reflecting what would happen in a families 529 account.

Taxes and penalties are only assessed on a 529 account when the account is used to pay for a non-education goal.  The Cash Flow Planner is an optimized solution, so it will make sure that this cash is not used unless absolutely necessary.  For instance, if your education goal does not exist until sometime in the future, the system takes into account that any earlier withdrawals unrelated to education would come with a penalty, so it will use other resources- if available- to pay for these other goals.