Q. Do I NEED to contact the trustee to get these corrected?
A. Need? No. Should? Probably.
You are (apparently) shown as the "recipient". So you, the owner, have to report the distribution, rather than the pre school beneficiary having to fil a tax return.
But, you have a much bigger problem. 529 plans can only be used for K-12 (or post secondary) education. Pre-K school expenses are not eligible. You have a non qualified distribution.
Reference: https://intrepideaglefinance.com/blog/can-a-529-plan-pay-for-preschool , which says, in part:
"The expanded provisions of 529 plans do not apply to preschool, pre-K, or any other educational opportunity that happens before kindergarten. The revised rules are very specific to K-12 as the only “pre-college” exception. Unfortunately, tuition and fees for private preschool is not included. "
If the distribution was taken after December 22, you can still put it back (a rollover) within the 60 days allowable.
