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[quote=Anonymous]Paid a tuition bill on Friday, did a withdrawal from 529 right after as reimbursement. Money is in account today (Wednesday). No taxes due. You just have to keep receipts, records, etc in case anything is asked to prove you used the withdrawal to pay tuition. When you do the withdrawal (distribution is the technical term) you just indicate it's for an allowable expense and there is no tax paid. In January you will get a tax form 1099-Q. Since it's an allowable distribution, you just keep this form, you don't have to do anything with it. If you withdrew the money for a non-allowed expense, you would have to report it on your tax return and pay a fine, and it becomes taxable income.[/quote]
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