Qualified Tuition Program (Sec 529 Plans) - 1 Hour CPE

Gain Practical Knowledge of 529 Plan Taxation and Compliance Requirements for Clients

Learning Objective:  Students in a Sec. 529 course will learn how distributions are treated under the Sec. 72 pro rata rules—how withdrawals are allocated between contributions and earnings, how Form 1099 Q reports those amounts, and when earnings become taxable if distributions exceed adjusted qualified education expenses. They'll study what counts as qualified expenses (tuition, room and board for half time students, K 12 limits, computers, apprenticeship and special needs services) and recent expansions to include certain postsecondary credentialing expenses. The course also covers gift, estate and generation skipping tax issues, contribution limits and the five year election and Form 709 reporting for large contributions, beneficiary change and rollover rules (including ABLE and Roth rollovers), recontributions of refunds, and the 10% penalty for nonqualified distributions. Finally, students learn practical coordination with education credits, scholarships and financial aid, timing and documentation strategies to minimize taxable earnings and penalties, and proper information reporting to clients.