5329 Form - for Coverdell

Forum|Forum|4 years ago
March 24, 2022
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Hi Experts,

I was told when I removed the excess contribution from Coverdell ESA account for the minor, the form 1099Q will be under the minor's name. So if I file the Form 5329, I should put under my name and SSN#? Then 1099Q name won't be matching with the Form 5329. Kindly confirm.

Thank you so much!

Hal_Al

Employee

Q. I was told when I removed the excess contribution from Coverdell ESA account for the minor, the form 1099Q will be under the minor's name?

A. No. The 1099-Q will be in your name. Confirm that with the plan administrator.

MNYLAuthor

Thank you Hal_Al! I called the brokerage again to ask. They said since the minor is the account owner, 1099Q should be in his name. Since I am the custodian, when I file Form 5329, putting my name and SSN# should work. Correct?

Any insights from anyone please advise! Thank you!!

Hal_Al

Employee

If the child is the account owner (highly unusual), as well as the beneficiary, and the recipient of the 1099-Q, then form 5329 goes on the child's tax return.