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S
shschubert
April 13, 2022
Question

My son finished college and we cashed out his 529 plan. How do we file taxes for that final distribution?

  • April 13, 2022
  • 2 replies
  • 0 views
We have the 1099-Q form with my son as the recipient. I'm assuming he would be the one filing for it.

2 replies

KrisD15
KrisD15
April 13, 2022

Yes.

If the funds were not used for education purposes, and the 1099-Q was issued to the student, the student would need to claim and pay the tax on that final distribution. 

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Hal_Al
Hal_Al
Employee
April 13, 2022

In addition to tax on the earnings portion (box 2 of the 1099-Q), there will be a 10% penalty (on the box 2 amount) for a non-qualified distribution. 

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