Grandparents had this 529 education program for there 6 year old granddaughter. The company adviser advised them to roll it over a state education contributions plan - 529 college plan. The father became very short over the paper work and told the advisor to just send him a check. The check was issued to the 6 year old granddaughter/daughter and her social security. The parents signed the daughters name under by mother and put it into the states 529 plan. Did not cash the check but the 1099Q shows a distribution of $12,033 and earnings $2933 with the basis of $9100. So will this go on the 6 year old for the $12,033 or the parents return. What a mess, cause it was not cashed but rolled into another education program. Has anyone ever had this problem. Some help please on what or where or which one to report if any.
Thanks
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