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Closing our son’s 529
Our son has a 529 account we’ve set aside for him but has a scholarship that covers his university tuition and books. I have heard that he can have money taken from this with no tax penalty even though he isn’t in need of it for college expenses. If I distribute to his name how do I handle his taxes for 2021? Should we clear all of the account prior to his graduation? Do I somehow show his scholarship and the distributions on his return?
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November 7, 2021
12:31 PM