529 plan mistake

[Delawaredave5]

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.

 

[EastWest Gal]

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.

 

[48Fire]

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

 

[Delawaredave5]

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 !

 

[pb4uski]

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.