Discussion:Losses on 529 Plan
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Discussion Forum Index --> Tax Questions --> Losses on 529 Plan
| 11 March 2006 | |
| Have a client who lost approximated 10% of funds contributed to a 529 plan. Loss was due to excessive fees and market conditions. In 05 client has liquidated the plan, I believe that the loss can be deducted as an itemized deduction, but haven't been able to find anything authoritative on the subject. If anyone has come accross any discussion of this - your comments will be appreciated. | |
| 11 March 2006 | |
| The instructions on the 1099Q say to report it on schedule A. Don't forget possible state issues. | |
| 19 February 2007 | |
| A little deviation from this aspect of the 1099 Q. But I need some HELP: Have a 1099 Q from a taxpayer. The box # 6 is checked ,. this box being checked inidicates that the recipient is not the designated beneficiary. In this case it is the mother . The beneficiary is their child who is not even being claimed as their dependent. I would venture to say that the earnings claimed in box # 2 would be taxable. Can someone please help to clarify this. Would the earning in box#2 then be reported as income on 1040?Also, would there be a penalty?
An asssistance or clarification in this matter is appreciated. | |
| 19 February 2007 | |
| NAA - Was the money used for the child's tuition? If so, the earnings may or may not be partially taxable to the child who is the designated beneficiary. See Worksheet in Publication 970. | |
| 19 February 2007 | |
| Solomon- The money was used for the child's education .
So the child does not need to be claimed as a dependent, and the 1099 Q can be still be all or partially tax free (determined by the worksheet ) even if withdrwan by the parent and not the "designated beneficiary ? (Sorry, but the is is the first year I have experience seeing these forms and working the worksheets) | |
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