As I understand it, I am permitted to do the following consistent with the rules on 529 distributions:
(1) pay daughter's first semester Freshman year college bill with my airline miles credit card;
(2) have her 529 Plan send her a check for the same or less amount in the same calendar year;
(3) have my daughter endorse the check over to me;
(4) pay my credit card bill
I understand that the IRS will issue the 1099-Q to my daughter but, since she's the beneficiary, won't be looking to match the amount to any entry on her next federal tax return (whereas the IRS would be looking to match it to my return, as the owner, if the distribution were directly to me).
So is this a permissible way to reap the miles on my airline credit card while avoiding a letter from the IRS seeking documentation for the distribution? Or have I misunderstood something?