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February 26, 2020
Question

Can I use my kids 529 savings to pay for a State Prepaid tuition lump sum

  • February 26, 2020
  • 1 reply
  • 0 views

My kids 529 plan is in a NY 529 plan, however we live in Florida. The FL prepaid tuition plan is at a lower price this year and we are thinking of paying the lump sum to lock the tuition cost. Is this considered a qualified 529 expense? How will we report this in our 2020 tax return? Will we get a 1099-Q form since this not a specific College or University?

1 reply

Hal_Al
Employee
February 27, 2020

Ask the administrator of the FL if they are qualified for a rollover form another plan. i suspeect they are. Then it will be treated as a rollover. TurboTax can handle that if a 1099-Q is issued.