Since this was done in 2023, and you are now past the window to return the distributions to the accounts, there is nothing you can do but claim the income and pay the tax.
Yes, the dependent children are subject to Kiddie tax if they are under 18 or under 24 and a student.
If you can't complete the student's returns because you are extending your return, you'll need to extend their returns as well. Of course that just gives you more time to file, not free time for paying taxes. If a balance is due, the extension to file does not eliminate penalties and/or interest on the tax bill.
Had you waited, the rules have changed for tax year 2024 where funds in a 529 account can be rolled over into a Roth account, but this change does not help you if you depleted the accounts in 2023.
Community is open year-round. You can always ask a tax question BEFORE you make a financial transaction decision.
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