Hi, I think my 529 plan distribution is fully covered base off my expenses for 2023. However I would love to have an expert confirm my assumption:I paid $12000 out of pocket for educational expense for the spring semester of 2023 in February 2023.I withdrew from my 529 plan $18000 in August 2023.I paid $13000 for the fall semester of 2023 in August of 2023 after we received the distribution.Is my withdrawal fully covered by the expenses I paid in 2023, hence no penalty will be accessed?

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529 Expense and Withdrawal Timing Question

Hi, I think my 529 plan distribution is fully covered base off my expenses for 2023. However I would love to have an expert confirm my assumption:

I paid $12000 out of pocket for educational expense for the spring semester of 2023 in February 2023.
I withdrew from my 529 plan $18000 in August 2023.
I paid $13000 for the fall semester of 2023 in August of 2023 after we received the distribution.

Is my withdrawal fully covered by the expenses I paid in 2023, hence no penalty will be accessed?

Best answer by Hal_Al

Q. Is my withdrawal fully covered by the expenses I paid in 2023, hence no penalty will be accessed?

A. Yes. The only timing requirement is that you paid for qualified expenses, of that amount, in the same year as the distribution.

Employee

I'll page @Hal_Al since this is the same member who posted a related question.

Employee

Q. Is my withdrawal fully covered by the expenses I paid in 2023, hence no penalty will be accessed?

A. Yes. The only timing requirement is that you paid for qualified expenses, of that amount, in the same year as the distribution.

Thank you so much