I am having a problem trying to solve an issue with a 1099-Q. The original beneficiary was the brother and his triplet siblings received funds last fall. However, the beneficiary was never changed and it was issued with the brother's name and SS#. I am trying to figure out how to report the 1099-Q. The first problem is that all 3 girls received 1/3 of these funds. Second, I can't divide up the funds to allocate between the 3 girls because it was one 1099-Q. Therefore, on the parents return I allocated all the funds to one child and as a disqualified disbursement. Finally, Turbo Tax then stated that the student has to file a return for a certain sum of money. Is this, ok? I am trying to comply with the IRS code and untangle this situation.
