Say there is a 529 account with $30K in it. It is owned by "account holder" who is in the 20% capital gains tax bracket.
The "beneficiary" of the 529 is no longer going to school, is not disabled, but has low enough income that their capital gains tax bracket would be 0%.
Is there a way for the "beneficiary" to take an unqualified withdrawal from a 529 so the tax liability falls on them?
My thought is that the "beneficiary" would only pay the 10% penalty and not any capital gains taxes (because of their low income), where the "account owner" would pay a total of 30% of the withdrawal.