|I know I can borrow against my 401(k), but can I borrow against the value of my 529 account?|
No. Section 529 plans do not allow loans against an account's assets. You can, however, make withdrawals from the plan to pay for qualified educational expenses. Keep in mind, though, that nonqualified withdrawals (i.e., funds not used for qualified higher education expenses) are subject to a federal penalty tax of 10 percent on the earnings portion of the withdrawal (a state penalty may apply as well). You may also owe federal, and in some cases state, income taxes on the earnings portion of a nonqualified withdrawal.