Returning Member
This widget could not be displayed.

Education

Hi - I meant the fact that there is an exception to the 10% penalty for scholarship withdrawals. I wasn’t sure how a non qualified withdrawal that should not be subject to the penalty should be reported. It doesn’t look like there is a place on the 1099Q to designate what is qualified vs non qualified, so it appears that the qualified and non qualified (for the scholarship) withdrawals will be reported on the 1099Q together. I had called the investment company where we have the 529, and they indicated that the scholarship part should be withdrawn as a non qualified distribution. 

 

Thanks