"Part of the total reported on the 2024 1099-Q was a distribution for tuition in 2025. However this transaction was processed by the payor/trustee in December 2024. The relevant tuition was paid in January of 2025.
Was the December distribution sent to you or directly to the school? Does paid in January of 2025 mean you actually made the payment then or just that the school posted it to you account then?
Technically, to be a qualified distribution, the payment must be made in the same year as the distribution. A payment made in 2024, for 2025 tuition (for 1st term classes) qualifies for a 2024 distribution.
Here are some previous discussions on this issue. The bottom line: claim it as a qualified expense and hope you can explain it away in the (unlikely) case of an IRS inquiry. Do a better job on timing next year.
https://ttlc.intuit.com/community/college-education/discussion/re-529-qualified-withdrawal-time/01/3... (2025 two strong cites)
https://ttlc.intuit.com/community/college-education/discussion/529-provider-distributed-funds-on-12-...
https://ttlc.intuit.com/community/college-education/discussion/i-took-a-529-distribution-in-2021-for...
Mercy of IRS
https://www.savingforcollege.com/article/timing-of-529-plan-distributions-must-match-qualified-expen...
rollover 60 days
