Can I withdraw money from my daughter's 529 account without penalty for scholarship awards received in previous years?

[cooperalice06]

She is now a senior and will graduate in May.  She received a full scholarship for previous semesters from her University.

[Hal_Al]

Simple answer: no.

But,  maybe. Peter J. Greco, CPA, founder and chief tax strategist at the CSI Group, believes you have more latitude when deciding when to take the scholarship distribution. “Most believe and have written that the distribution must be made in the same year that the scholarship paid for the tuition expense,” Greco says. “However, IRS 970 is silent as to when the money must be withdrawn. If Congress is trying to encourage 529 plans, then it makes good policy sense that the withdrawals can be made any time prior to graduation.” https://www.investopedia.com/news/penaltyfree-way-get-529-money-back/