I accidentally withdrew from my 529 on Dec 29 but the college recorded the tuition payment on Jan 2. What can I do to avoid tax penalty at this point? Is there any way the IRS would forgive a couple days’ difference? It’s been over 60 days since the withdraw. And I’m trying to submit my fed tax form by April 15
Please help – withdrew 529 on different calendar year
byu/Unkya333 inpersonalfinance
Posted by Unkya333
1 Comment
What kind of help would you like?
If you cannot identify qualified expenses for 2025, then the 2025 distribution will be considered an unqualified distribution. Report it on your 2025 tax return as such.
If you have remaining 529 funds, you can distribute that during 2026 to offset the tuition payment you made in January 2026.