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In Dec 2017, we withdrew 529 funds for tuition, but the college reflected it in Jan 2018 (not 1098-T). An "Excess distribution" is triggering a tax payment in 2017. Help!
This is a question about 529 reporting. In late December 2017, we withdrew money from the 529 for college tuition; we directed the money to be sent directly to TMS (the college's billing service). This full amount was reflected in the 1099-Q for 2017. The college did not reflect this payment until early Jan 2018; i.e., it wasn't reflected in the 2017 1099-T. Thus, a significant "Excess distribution" appears to be triggering a large tax payment for us in 2017. How can we correct this timing issue?"
Thanks!
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‎June 5, 2019
2:29 PM