My college refunded tuition paid with 529 Plan funds. What do I do?
May 01, 2020 : H&R Block
In most cases, if your college issues a refund for a qualified expense, you have 60 days to reinvest the money back into your 529 account. Right now, you might be counting the days since your college issued the refund to see if your 60-day window has passed. Luckily, recent IRS guidance gives you some additional time to recontribute the refunded amount back to your account.
With the IRS announcement, you have the following options:
- Redeposit the refunded amount by July 15, 2020, or 60-days after the refund was issued, whichever date is later.
- Apply the funds to other qualified expenses later this year. Be sure to spend it on expenses for the fall semester as the funds need to be used by December 31, 2020.
