Macdojo70
New Member

Education

Student received a distribution from a 529 account during 2023 at which time the student was enrolled in a US Military academy.  Understanding is that attendance at a service academy is an exception to the 529 withdrawal 10% penalty, however Turbo tax continues to calculate a 10% penalty although the Student Information worksheet notes in box 2 that the individual attended a Service academy as box "e -military academy is selected".   How can the 10% penalty being calculated be removed as this distribution is an exception to the 10% penalty.