ESA/Coverdell Question
Hello,
Are we able to confirm if educational expenses be withdrawn the same year they were incurred or does it not matter?
Thank you.
Hello,
Are we able to confirm if educational expenses be withdrawn the same year they were incurred or does it not matter?
Thank you.
Permalink Submitted by Alan - IRA critic on Wed, 2018-09-26 19:15
Yes, the ESA distribution must be done in the same year the qualified expenses are incurred. The beneficiary cannot reimburse himself in a later year or use tax free distributions to pay back a student loan.