Solved
Box 4 on the Form 1099-Q has non-trustee to trustee distributions. Are these distributions taxable with a penalty if the proceeds were used for educ exp?
The gross distribution, earnings and basis are all reported on the Form 1099-Q but box 4 is marked "no." The distribution was taken and spent on education expenses and reported to the 529 plan. Does the plan only allow trustee to trustee transfers to be non-taxable and free from the penalty?
