If you set up a 529 savings plan for your child's college education, and either they decide to skip college or there’s money left over by the end of it, you can still withdraw the amount representing your original contributions without any consequences. You can do the same for the account’s earnings, but these will be subject to taxes and a 10% penalty. There are several circumstances wherein the penalty won’t apply, such as if the beneficiary on the account is changed to another family member; if the original beneficiary dies, becomes disabled, or attends a U.S. Military Academy; or if the beneficiary qualifies for a scholarship or grant.