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April 15, 2021
Question

Does cashing a 529 check and redepositing the same amount into a new 529 account count at using money from a qualified education program?

  • April 15, 2021
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1 reply

Hal_Al
Employee
April 15, 2021

Simple answer: Yes.

That is, the 1099-Q  you get for the 1st check represents a "qualified Distribution" if the money is put back into the same or another 529 plan within 60 days.  The money is not taxable, or even reportable.  Technically, you have a rollover.