1) must the distribution be taken in the same year that the expense was actually incurred (ie. Could I request a distribution for qualified costs incurred last year?
2) let's say Child A has a 529 plan totaling $50,000 where he is the beneficiary. His brother Child B also has a 529 Plan account, but it only has $10,000 in it. In November, I change the beneficiary for $30,000 of Child A's account to Child B thus making Child B's account total $40,000. In December, I request a distribution from Child B'a account for $35,000 for qualified expenses that had been incurred earlier in that same year, but before November. Is this allowed, or does it matter that the Child B costs occurred during months of the year before Child B's balance was high enough to pay them? In a similar vein, what if I did not even create Child B's 529 Plan account until November. Could I take distributions in December for qualified costs incurred earlier that year before the account was created?