Can I withdraw unused 529 funds without penalty?

If I've paid for all of my kids to go to college and I still have money left in 529 accounts, can I withdraw it without penalty?

You generally will get stuck paying a 10% penalty and income taxes on your earnings if you use the 529 money for anything other than college expenses. You also may have to pay back any state income-tax deduction you received for your contributions.

But there are plenty of ways to get around this penalty if you don't need the money right now. Because most states don't have an age limit for using the money, you could keep it in the account in case any of your children go to graduate school. Or you could switch the account to another beneficiary who might need the money for college. You won't have to pay the penalty as long as the new beneficiary is considered a member of the family, including extended family such as nieces and nephews and sons- and daughters-in-law.