Just in terms of the 10% penalty.
Does the exemption apply for distributions matched to that same year scholarships?
Client did not take distributions in the first 3 years of collage.. Student had scholarships that covered it all. But now he is done and the money is sitting there (burning a hole).
Can they draw this year and point to those first 3 years of scholarships to get the exemption?
the code had: (iii)made on account of a scholarship, allowance, or payment described in section 25A(g)(2) received by the designated beneficiary to the extent the amount of the payment or distribution does not exceed the amount of the scholarship, allowance, or payment...
I am so tired of this year