I have a slightly different issue. My son is a freshman (started school in the fall of 2021). Morgan Stanley manages my son's Bright Directions 529. They counted a distribution on 1/4/22 for the Spring 2022 semester that had assets sold on 12/31/21 in the 1099-Q for 2021 year-end. I told the representative that I did not authorize the assets to be sold on 12/31/21. I told them the check needed to be received by 1/13/22. This caused an issue where the school received the check directly from Morgan Stanley by 1/13/22 but they showed in the 1098-T the tuition for fall semester 2021 only. Morgan Stanley said they could not correct the 1099-Q to show how much was actually disbursed in 2021. This causes issues in Turbo Tax. I don't know the best way to present the situation in Turbo Tax since all actual distributions were used for qualified expenses. I don't know if I can show the 1099-Q, the way it should be or not report the 1099-Q in Turbo Tax. I need help.
