1099-Q Distribution that is used by more than one beneficiary

Forum|Forum|4 years ago
February 3, 2022
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I have two kids in college and have two 1099-Q 529 account distributions. Since one of the school's tuition/expenses is significantly more, I used one of the 1099-Q distributions to pay for part of each kid's expenses.

However, Turbo Tax requires you to select which beneficiary the 1099-Q distribution was for. When I assign one to each kid, I do not get the full tax benefit since one the child's school costs is less than the distribution.

Is there any way in the TT program to designate that the distribution was for more than one child?

Hal_Al

Employee

@Schu said " I used one of the 1099-Q distributions to pay for part of each kid's expenses"

You can't do that. The distribution is only qualified if used for the beneficiary's expenses.

Q. Is there any way in the TT program to designate that the distribution was for more than one child?

A. No. That's not allowed.

What you can do (but not after the fact) is rollover money from one 529 to the other, since the beneficiaries are siblings. Talk to the plan administrator about the procedure.