Another 529 question

[Anonymous]

Are we obligated to take the money out in the year the expense was incurred or can we "bunch it up" and take it in year 4? What are the pros and cons? Assume no issues with cashflow.

[Anonymous]

I think you are obligated to match expenses and withdrawals — to the point that you need to figure out which calendar year matches second semester tuition.

[Anonymous]

Anonymous wrote:I think you are obligated to match expenses and withdrawals — to the point that you need to figure out which calendar year matches second semester tuition.

If I have dated invoices from the university and just claim for them all at the end of the 8th semester, won't I have the mapping between expenses and withdrawals assuming I do 8 withdrawals that equally match each invoice? What am I missing?

[Anonymous]

Pretty sure you need to withdraw in the calendar year you spent the money.

[Anonymous]

Anonymous wrote:Pretty sure you need to withdraw in the calendar year you spent the money.

You do.