Audited over Scholarshare 529 withdrawals?

_rentof2
Thu, 08 Oct 2009 21:18:20 +0000

Someone asked me about this today. For winter quarter the bill is posted on the student’s account on Dec. 15th. It’s due Jan. 1, it’s past due by Jan. 10. It takes about 8-10 days for the disbursement to go from initial request to money in the bank.

If the whole thing (disbursement request and paying the college bill) is in 2010, they run the risk of not meeting the past due deadline of Jan. 10th. But since the bill is posted to the student’s account in mid-December (even though it’s not due until Jan. 1), can the family take the disbursement and pay the bill for winter quarter before the end of 2009?

I was stumped.