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.
- Does it be recontributed into same fund or class share in the same account?
- Can it be refunded into an account with a different beneficiary at the same state plan?
- Does it need to go back into a 529 plan all together?
- 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