[Nicole]

I’m about to move some money from my daughter’s 529 to cover tuition.

Is it okay for it to move through my checking account for tax implications, etc or does it need to go through hers?

Thanks!

[Angela]

Make sure your tax person doesn’t categorize the 529 money going to you as taxable income like mine did and I had to get it amended.

It’s fine to pay upfront and get reimbursed by 529 to answer your question.

You can designate on the website where your 529 money is sent.

I always send tuition money directly to the school from the 529.

[Keri]

We just transfer it from the 529 account directly to the school. Can you do that?

[Kevin]

If you are taking some out to account for scholarships received you want it in the child’s name for the lower tax rate because that is taxed but no penalties.

I know you didnt ask that but…

[Karl]

It doesn’t matter as long as it’s for a qualified expense.

[Karen]

Thats what we do – request the money to reimburse ourselves for what we pay to the school directly.

With our 529 provider, I have to designate whether the 1099-Q is issued to me or my daughter.

My CPA says it doesn’t really matter if it’s a qualified expense.

[Cindy]

You can also reimburse yourself for housing up to a certain amount…. Amount depends on college or university attending.

College can give you that number

[Nicole]

I send it directly to the University. They will then send you any extra monies.

[Helen]

I pay with a credit card and then transfer the money from the 529 to my checking account

[Author]

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