Technically, what must happen is that the payment to the school must be in the same calendar year as the distribuiton from the 529.
Q. Are there problems that will arise from withdrawing 529 funds in 2022 for classes in spring 2023?
A. No. As long as the payment for Spring 2022 was also made in 2022. It is OK for you to pay the school on 12/1/22 and then have the 529 send you money later that month.
Q. Would I be better off paying the tuition from my bank account by 12/1/22 and getting reimbursed from my 529 1/1/23 or later?
A. No. Technically, that would make the 529 distribution non-qualified. We have no information about how strict the IRS is about that rule.
Q. I don't know if it makes a difference, but I also have another child in her senior year of college whose spring 2023 tuition isn't due until 2023.
A. Again you want to match the 529 distribution year to the payment year. If you pay in 2023, take the distribution in 2023.
