During the last 20 years, I contributed $25,000 to a 529 account for my son. Its current value is $75,000.
He is interested in going to a university in Europe.
Let's assume that all of his educational expenses would not be 529-eligible.
If he sent me receipts for his unqualified educational expenses and I reimbursed him from his 529 account, is he responsible for any penalties and taxes, or am I?
Regardless, could I include in the distribution an amount to cover the anticipated penalties and taxes and the penalties and taxes on the penalties and taxes included in the distribution?
Thanks.
