154-Masterclass on 529 Plans a.k.a. Qualified Tuition Programs - Part 2: Savings Plans
Radical Personal Finance
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What Is a Qualified Distribution?
When you take a distribution from a five to nine account, there is no you're going to receive a form called a ten 99 c. So the financial institution will send you that form, and it's just simply going to show how much you took out. And so then the so, again, kind of like annuity taxation, where it gets split out on the form, and you can calculate it in essence, like a ratio. 75 % is contributions, 25 % is growth. If you have 10 thousand dollars of qualified expenses for your college student or for you, and you take a ten thousand dollar distribution, you don't report that distribution anywhere. There's no forms to fill out
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