distribution from 529 plan to pay 10,000 student loan shows up as taxable distribution when paid to owner and not the beneficiary
You have to scroll almost to the bottom of the 1099Q worksheet, " computation of taxable distribution" to enter amount paid toward loans
yes I had already done that and all info is entered correctly. The program treats the 529 distribution to payoff a student loan as taxable if paid to the parent vs allowable if paid to the beneficiary. I do not believe this to be correct as i do not see anything in tne IRS publication that would indicate the above. Should be qualified either way in my opinion
I've just done one for a client. She took distribution, but beneficiary was her son. I went to bottom of 1099Q worksheet put amount paid towards loan, and none of it showed up as taxable, as it should.
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