I ended up taking a distribution on just ESA #2 and I will sure find out.
I reviewed last year's work sheet for the 1099-Q and it looks like the program must have prompted me to enter the cost basis of the ESA at the end of the previous tax year, the value of the ESA at the end of the current tax year, and the distribution amount. Evidently that is the info TT needs to figure it all out. Hopefully this year those questions appear as though it's a new ESA - I just can't remember.
I was afraid to start/test the program in TT until I am ready to complete the entire process. I have read in numerous posts that it's important to complete the Education section of TT in the proper order.
I get the feeling TT might have trouble handling two 1099-Q's - I'll be on the lookout for that when I go thru that section since this will be an issue in a future year.
