529 Account distributions and completing tax forms

lindz126
Fri, 11 Mar 2011 10:11:44 +0000

helpful thread. my d also received a 1099Q for a distribution from a prepaid plan and shows earnings of $1200. am I understanding correctly that the earnings portion IS taxable? while doing her tax return on Taxact it also indicated a penalty, (albeit only $10) but didn’t really understand why.