529 Expense and Withdrawal Timing Question

Hi, I think my 529 plan distribution is fully covered base off my expenses for 2023. However I would love to have an expert confirm my assumption:

I paid $12000 out of pocket for educational expense for the spring semester of 2023 in February 2023.
I withdrew from my 529 plan $18000 in August 2023.
I paid $13000 for the fall semester of 2023 in August of 2023 after we received the distribution.

Is my withdrawal fully covered by the expenses I paid in 2023, hence no penalty will be accessed?

477

1 Best answer

Level 15

Jan 3, 2024 2:24:46 PM

Q. Is my withdrawal fully covered by the expenses I paid in 2023, hence no penalty will be accessed?

A. Yes. The only timing requirement is that you paid for qualified expenses, of that amount, in the same

year

as the distribution.

Level 15

Jan 3, 2024 9:51:54 AM

I'll page @Hal_Al since this is the same member who posted a related question.

Level 15

Jan 3, 2024 2:24:46 PM

Q. Is my withdrawal fully covered by the expenses I paid in 2023, hence no penalty will be accessed?

A. Yes. The only timing requirement is that you paid for qualified expenses, of that amount, in the same

year

as the distribution.

Level 2

Jan 16, 2024 7:27:23 PM

Thank you so much