529 Plan Recontributions

Many schools have adopted social distancing guidelines in response to the COVID-19 pandemic, moving classes online or canceling them altogether. As a result, schools are partially or wholly refunding tuition costs for classes.

If you’ve received a refund on tuition paid for with funds from a 529 College Savings Plan, there may be tax implications if the funds are not managed correctly. A 529 plan recontribution is a good way to avoid a taxable event, but there are a few steps you’ll need to take to ensure the refund is recontributed correctly.

In this whitepaper, we explain…

  • How 529 College Savings Plans work
  • The difference between qualifying and non-qualifying distributions
  • How tuition refunds can trigger a taxable event
  • How to properly recontribute a tuition refund to a 529 Plan