My daughter started college in the fall of 2014, and received partial academic scholarship for $4,500 in the fall of 2014 and $4,500 again for the spring of 2015. She just graduated with a bachelors degree December 2017. All qualified expenses were paid for with 529 plan withdrawals, and ultimately, there’s excess funds remaining in the 529 plan, and we don't have/need replacement beneficiaries, so would like to withdraw the excess funds. I know that scholarships can be used to waive the 10% non-qualified withdrawal penalty, but I'm unable to find if the withdrawal must take place the same year as the scholarship, or if it can be any time. We didn't take the funds out in 2014/2015, as we didn't know if there'd be sufficient funds remaining to pay for college. Turns out, there was. If we take out the funds next year (2018), will that trigger an IRS issue, since there won't be a 1099-T for 2018? Thank you for any help/guidance that you can provide!