Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
529 plan mistake
Old 10-04-2014, 06:50 PM   #1
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
529 plan mistake

I did a withdrawal recently from 529 plan.

But when I received the confirmation, it shows a DEPOSIT.

Don't know if I did the mistake or fund company (I suspect me).

Any idea what I do next ? I'll obviously call Monday.
__________________

__________________
Delawaredave5 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-05-2014, 04:45 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,472
Where did the deposit come from? Check the account to which you had planned to withdraw the funds, and see if the that account shows a withdrawal, in which case, you did make a deposit to the 529 somehow. Hope it wasn't too much money.
__________________

__________________
EastWest Gal is offline   Reply With Quote
Old 10-05-2014, 05:38 AM   #3
Full time employment: Posting here.
 
Join Date: Jan 2006
Posts: 684
So can't you just do two withdrawals, one that nets out the original, and the second for your original intent? I am guessing 99.999 percent of these errors are not on the fund end.

Sent from my SCH-I535 using Early Retirement Forum mobile app
__________________
48Fire is offline   Reply With Quote
Old 10-05-2014, 06:37 AM   #4
Full time employment: Posting here.
Delawaredave5's Avatar
 
Join Date: Dec 2004
Posts: 606
Quote:
Originally Posted by 48Fire View Post
So can't you just do two withdrawals, one that nets out the original, and the second for your original intent? I am guessing 99.999 percent of these errors are not on the fund end.
Yes, I'm sure it was my mistake and I can do the two withdrawals.

I'm just wondering how/if I should document this mistake for tax purposes.

I'd like to avoid getting a 1099-Q for "2 times the real distribution" - as I don't have expenses to match the 2x amount.

I just didn't know if the fund company can do a "reversal" or something to make my mistake not look like a deposit and withdrawal.

Thanks !
__________________
Delawaredave5 is offline   Reply With Quote
Old 10-05-2014, 10:20 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,427
Contact the fund administrator. I suspect that they will reverse the deposit as a mistaken contribution (and it will be reported that way for tax purposes) and then the distribution as a distribution that will then jive with your expenses.

I had a similar mistaken contribution issue a few years ago with my HSA and I suspect it will be handled similarly.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Pay down the mortgage (fund 529 later) or Fund 529 now? Math problem. bo_knows FIRE and Money 1 05-16-2012 04:24 PM
529 plan, soon to be dad Jbird FIRE and Money 26 12-31-2009 02:55 PM
EIRA or 529 plan first? Spanky FIRE and Money 1 12-09-2007 04:47 PM
Quick 529 College Plan Question TromboneAl FIRE and Money 3 11-29-2006 02:14 PM
Using a 529 Plan for real estate investment Outby7 FIRE and Money 5 02-19-2006 07:50 AM

 

 
All times are GMT -6. The time now is 04:44 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.