I know that we can take a withdrawal from my daughter's 529 account with no penalty (taxes to be paid on earnings) to compensate for a scholarship she was awarded. My question is - does the withdrawal have to occur in the same year the scholarship was received? My daughter is a senior and I only realized we could do this earlier this year but she has received scholarships her entire four years of school. Can we take a withdrawal now without penalty for a scholarship she received in a prior year?
