Timing of 529 Plan Distributions ???

[LCP]

I think they need to be matched against the costs that are incurred (as opposed to paid) during the tax year, correct?

Therefor if a client took money out last January thinking he was reimbursing himself for 2009 costs he was wrong.

Hopefully he has 2010 costs that the distribution can be applied to and hopefully taking the money in advance is not a problem.

And it appears to me that he should not take any more money out this year.

[JG EA]

Pub 970

To determine if total distributions for the year are more or .
less than the amount of qualified education expenses, you
must compare the total of all QTP distributions for the tax
year to the adjusted qualified education expenses

It would seem so..