We accidently contributed to an ESA for our child when over the income limit for the year. We withdrew the contribution and the associated earnings in January of the following year to avoid the penalty and the money was transferred directly into a 529 plan for the same child. We then received a 1099-Q in the child's name and SSN. Are the earnings still taxable even though they went straight into a 529 plan? If so, how do we report them on our tax return? Our child is less than 10 so doesn't have a tax return.
