Recontributions

[Paul4]

Can you please help me with some questions regarding recontributions? I was hoping to get some clarification on exactly where the recontribution can be refunded into. I know it can be eligible to be put back into the same 529 plan account for the same beneficiary that the distribution was made.

1. Does it be recontributed into same fund or class share in the same account?
2. Can it be refunded into an account with a different beneficiary at the same state plan?
3. Does it need to go back into a 529 plan all together?
4. What are other scenarios as to where the recontribution can be refunded?

The IRS Notice doesn’t get too specific.
In addition, consistent with § 529(c)(3)(D), the Treasury Department and the IRS anticipate that the regulations will confirm that the recontribution must be to a QTP for the benefit of the designated beneficiary who received the refund of QHEEs, although the recontribution need not be to the QTP from which the distributions for the QHEEs were made

[dcandmc]

IRS pub 970 says that for a refund of QEE that were treated as paid by a 529 plan "the student can recontribute these amounts into a QTP for which they are the beneficiary within 60 days after the date of the refund to avoid the need to figure the taxable part of the QTP distribution."

So it sounds like it definitely has to be the same beneficiary and it has to go back into a 529 plan in order to avoid taxes on the earnings portion of the refunded amount. Since it says that the refund can be recontributed into "a QTP" and doesn't specify the same plan that it originally came from, I would think that the refund could be contributed to a different investment vehicle in the original account or even a completely different 529 account with a different plan.