My dependent has two different Coverdell ESA accounts where she is the beneficiary (we transferred a sibling ESA into her name). We have been using ESA #1 to pay for college expenses thru 2021 and using Online TT to track her cost basis . ESA #1 does not have sufficient funds to pay for 2022 expenses.
Can I take the full distribution from ESA #2 this year without causing a problem with TT calculating cost basis on a second ESA ? Will TT prompt me to enter cost basis info for ESA #2?
I would rather not take a distribution from ESA #1 due to the way the funds are invested, and I would rather get just a single 1099-Q. I also don't want to juggle invesment holdings this late in the trading year, which I would have to do if I took a distribution on ESA #1.
I just want to make sure online TT can handle tracking a second ESA.
