Q. I am not sure if/how just the earnings portion vs. the full amount of the withdrawal amount is taxed. Is this something I have to estimate or track on my own, based on when my contributions were made, etc.?
A. The plan administrator does this for you. In January (maybe as late as mid February), you will receive a form 1099-Q. Box 1 will have the total distribution. Box 2 will show the earnings (taxable) portion of the distribution.
You are correct, because of the scholarship, the 10% penalty will not apply.
