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529 earnings taxed when withdraw was made for student loan
I received a 1099 Q for a non-beneficiary withdraw from a 529 plan, distribution code 1. The funds were used by me to pay my former dependent's student loan (she graduated and is no longer a student). Turbo Tax asks is student loan principal or interest was paid, but doesn't give the opportunity to answer the question. As a result, the earnings portion of the withdrawal are being taxed.
Should I just override?
March 19, 2020
4:44 AM