Client's financial advisor advises him to take all money out of his sons 529 plan and put the money in a savings account.
Advisor tells him as long as he only uses the savings account for college expenses this is allowed.
For 2021 have a large distribution in excess of basis on the 1099Q. The 1098T of course is a much smaller number. Added other allowable expenses books..room and board..supplies.
Coming up with a taxable distribution and penalty.
Any ideas on how I can reduce the taxable income and penalty. Thank you