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Handling College Refund for 529 account
in Oct 2019, I paid room/boarding of $12000 for entire year (part 2019 and part 2020) for my kid.
My kid was in the dorm till March and then return home due to COVID. In May2020, I received refund of $4800 from the college. Technically, i should have re-contributed this amount to 529 account within 60 days, but i did not know.
So, might be slapped taxes + 10% penalty on $4800.
However (my question), since I continued to make payments in 2020 for Tuition and next year 2021 room boarding, I really dont have to pay the penalty.... since I am spending this "$4800" for eligible expenses within 2020.
Am I missing something? Is there anything I can do in last two weeks of Dec to avoid penalty?
Topics:
‎December 13, 2020
7:05 PM