Discussion:ESA Rolled to 529 College Plan

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Discussion Forum Index --> Tax Questions --> ESA Rolled to 529 College Plan

DeniseRob (talk|edits) said:

18 March 2006
How do you report this in Lacerte Software? Do you reconcile the 1099Q for the minor child through a Kiddie Tax or what? The SS# is the minor child's. The Lacerte help shows nothing on this and I can't find anything specific in the IRS pub except that the rollover is tax free. The chile has no other income to report. Any Help out there?

Dennis (talk|edits) said:

19 March 2006
A contribution to a 529 plan is, I believe, an educational expense under the Coverdell rules. I think the transaction has to be within the same calendar year.

Riley2 (talk|edits) said:

19 March 2006
Dennis is correct. See Sec. 529(b)(2(B). No actual rollover is required. As long as the distribution and 529 contributon occur in the same year, there would be no reporting required.

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