topic How to report cost basis when zero cost basis was provided to 529 plan for the ESA rollover? in Retirement tax questions

How to report cost basis when zero cost basis was provided to 529 plan for the ESA rollover?

mimi57001 — Wed, 01 Oct 2025 17:02:45 GMT

My son has already graduated and there are money left in his ESA. The account has cash only since I sold all the assets a couple years ago. When I rollover his ESA to 529 plan, there was no cost basis provided from my brokerage firm to the 529 plan administration, so the total rollover amount was all considered as earnings. The brokerage firm told me that they didn't keep the record for retirement fund (they considered ESA as retirement fund). Anyway, I kept all my record and provided the information to my brokerage firm but they still took no action in providing that information over to the 529 plan administrator. First, for the rollover from ESA to 529 plan, what do we do with the tax reporting regarding cost basis? Second, what can I do to report cost basis if we transfer the 529 plan money later to his sister's 529 plan for her education expense? Is there a way that I can just enter the cost basis on my own using the documents that I kept for either case.

Re: How to report cost basis when zero cost basis was provided to 529 plan for the ESA rollover?

longtimeuser20 — Mon, 02 Mar 2026 21:36:29 GMT

I have exactly the same issue where ESA cost basis was not provided. After discussions with ESA provider (Vanguard) and recipient 529 (Utah my529), the conclusion is that it's up to me to make any necessary adjustments in tax returns because 1099-Q will have no or wrong cost basis.

Re: How to report cost basis when zero cost basis was provided to 529 plan for the ESA rollover?

AmyC — Tue, 03 Mar 2026 22:39:35 GMT

Yes, the basis is left up to you to keep track of through the years. If the IRS ever asks, you have a log or statements or something to show how you kept track of your basis.