Distributions from a 529 plan when beneficiary is listed as owner.

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Message Board Distributions from a 529 plan when beneficiary is listed as owner.

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 1 week, 3 days ago.

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  • #147829
    Anonymous

    We have a client who never changed his 529 account to his child as beneficiary. He is listed as the beneficiary on the 1099-Q and it has his social security number. He has two children in college and he took a $25,000 distribution. Can he apply that to either of their expenses or is he stuck because he was not the one going to college?

  • #147882
    Sandy Weiner
    Participant

    I think he’s stuck. He can to a tax-free roll over to his child’s 529 account if he did it within 60 days of the distribution. If it’s passed 60 days I don’t believe there is anything he can do.