We initiated a 529 plan disbursement on December 20, 2021 but there was a problem verifying the bank info and it was actually processed in January, 2022. The disbursement will now go on a 2022 1099Q but the expenses were incurred in 2021. If matched with 2021 expenses there will be no taxes owed but if matched with 2022 expenses - a portion would be taxable. We will also need to do a distribution for 2022 later this year. How can this be handled?
Thanks
