Question
529 rollover to ABLE account tax question
I (parent) am the 529 account owner. Rolled over $7000 from 529 to a beneficiaries' ABLE account since there were enough scholarships and grants that it won't be needed for educational expenses. Assumed this was a tax-free roll over, but I (not beneficiary) rec'd a 1099Q. Do I have to enter this (earnings of $4910) on my tax return? Or is this one of those situations where one simply doesn't enter the 1099 Q on the tax form?
NOTE: student has used some of this money for ABLE eligible expenses but more than half remains in the 529 account.
