If a college has made a refund of qualified 529 expenses for which 529 funds were used, does this money have to be re-deposited to the 529 account IF there will be future expenses in the same calendar year to offset the refund?
Specifically:
Nov2019: Paid 2020 Spring Room and Board from 529 plan and claimed disbursement on 2019 taxes.
April 2020: A partial refund was provided by the university for Spring 2020 Room and Board (Rent and Meal plan due to COVID19).
If I use this refund to pay for Fall 2020 qualified 529 expenses in July 2020, do I first need to repay the refund money to the 529 plan or can the Fall 2020 expense offset this refund since it occurs in the same calendar year as the refund.
In other words, is it necessary to repay the funds within the 60day limit to avoid taxes/penalites if the money will ultimately be expensed in the same calendar year?
