What does "Was for child education fund" mean?
Generally, the original cost of shares in a Qualified Tuition plan (QTP) ("529 plan") are ignored. Instead, the plan tracks your original contributions. Essentially, what you contribute is your basis, and the rest is earnings. The plan tracks it for you. When you take money out (a distribution), the plan administrator will issue you an IRS form 1099-Q. The total distribution will be in box 1. Box 2 will be the earnings and box 3 your pro-rated cost basis.
For example: your contributed $20,000, a few years ago. The plan is now worth $100,000. So, 20% of that $100K is basis and 80% earnings. This year, if you take out $10K, $2,000 will be treated as basis and $8,000 as earnings.
