Hi - I am completing my taxes on TurboTax for the distribution from a 529 plan. I graduated from college in 2017 and received $20,000 in scholarships for the 2016/2017 school year. My parents removed $20,000 from the 529 plan in 2018 as there is no guidance by the IRS for when the money should be withdrawn, so I received a 1099-Q for the 2018 tax year. Since I received a non-taxable scholarship, there should be no penalty as long as the withdrawal is less than or equal to the scholarship amount, which it was. How can I report these earnings, only pay the taxes on the gain and not incur the 10% penalty as the distribution should not be penalized? Is a 5329 form the best bet?