529 Plan Scholarship Exception reporting

[Hal_Al]

Q.  Are you sure about this? 

A. No.  As you stated, there are conflicting opinions because it's apparently  not spelled out anywhere.  

For more discussion, see 

https://ttlc.intuit.com/community/college-education/discussion/529-plan-withdrawals-and-prior-year-s...

It seems to take a little "reading between the lines" in PUB 970, which has the following wording:

To determine if total distributions for the year are more or
less than the amount of qualified education expenses, you
must compare the total of all QTP distributions for the tax
year to the adjusted qualified education expenses.

Here's a good non IRS explanation:  https://www.savingforcollege.com/article/timing-of-529-plan-distributions-must-match-qualified-expen...

[whatusername]

According to this, it's based on calendar year for the scholarship.   I wish 529 distributions were like HSA, withdraw whenever you want, just keep your proof.

https://www.savingforcollege.com/article/answers-to-quest[product key removed]ibutions-from-a-529-pl...