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posted Jun 6, 2019 3:55:00 AM

Do I answer yes or no to is this a return of contribution on the Coverdell ESA when part of the amount is earnings?

The beneficiary turned 30 and we cashed in her Coverdell ESA. She was not a student and has no educational expenses for 2016. The gross distribution is 3500 and the basis is 1500, so part of the amount is a return of contribution.  We cashed it in in April. Do I enter 0 for total value as of 12/31/2016?

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Intuit Alumni
Jun 6, 2019 3:55:02 AM

No , the return of contribution refers to a kind of correction being made to the account.  It is not referring to the fact that a portion of your distribution originally came from your contributions.  You would answer that question as No.

Also, if the account was non-existent as of December 31, 2016, then the total value would be zero.

1 Replies
Intuit Alumni
Jun 6, 2019 3:55:02 AM

No , the return of contribution refers to a kind of correction being made to the account.  It is not referring to the fact that a portion of your distribution originally came from your contributions.  You would answer that question as No.

Also, if the account was non-existent as of December 31, 2016, then the total value would be zero.