Skip to main content

Smart Savers Blog

1099-Qs are on the way


Due to changes made by legislation in late December 2015, the distribution of Form 1099-Q was delayed. Virginia529 originally anticipated mailing these forms by March 1, 2016, but good news: They are ready earlier than expected, and we are sending them now.

If you received account distributions in 2015, you (if you received the funds) or the account beneficiary (if the distribution was to a school or the beneficiary) will receive a 1099-Q in the mail from Virginia529. Virginia529 also sends a copy of the 1099-Q to the IRS.

Provided the distribution did not exceed 2015 qualified expenses, you should not need to report the distribution. However, the interplay between 529 proceeds and existing education tax benefits may impact that decision.

If the distribution exceeded qualified higher education expenses, you may have income tax consequences.

Consult a tax professional for more information and recommendations for your specific individual situation.

(pdf) Form 1099-Q Fact Sheet (pdf) Form 1099-Q FAQs

Resources to help you learn

Frequently Asked Questions

Find answers to the most common questions about 529 plans.

Smart Savers Academy

Tune in to a live episode and ask questions of the presenter, or watch a previously recorded webinar below.

Invest529 Portfolio Performance

Review and compare historical returns of Invest529 portfolios.