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tn1
Returning Member

Recontribute money in 529 college savings after withdrawal

My son received  6K refund from his college as scholarship after I paid his tuition of 10K from 529 college savings.  I re-deposit the 6K  to his  529 college savings account within 30 days from the date we got the refund.  Now, The rep from 529 college savings told me the amount appeared on 1099-Q  for 2019 will be 10K and NOT 4K ( 10K-6K).  Is that accurate? Why they don't substract the re-deposit amount if the law allowed to recontribute those funds back into the account anytime within 60 days of the refund without any tax penalties? Thank you in advance for you reply.

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1 Reply
Hal_Al
Level 15

Recontribute money in 529 college savings after withdrawal

Yes, they are doing it correctly.  But, you will not be taxed on it.  In the Turbotax interview, you will be asked if you rolled over any of the distribution to another 529 plan.  Answer yes, even though it went back into the same plan.

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