Form 1099-Q

Form 1099-Q is a record of all distributions made from a Coverdell Education Savings Account (ESA) defined under Section 530.

If there was a reportable distribution, the fair market value of your Coverdell ESA account will be reflected as of the end of the year.

Your Questions Answered

The Form 1099-Q will be sent to the account owner for distributions from a Coverdell ESA, regardless of whether the distribution was payable to the account owner, a third party, or the designated beneficiary's institution of higher education.

No. Taxes should not be withheld from your account.

The balance in the account generally must be distributed or transferred within 30 days after the earlier of the following events:

a.) The designated beneficiary reaches age 30, unless the designated beneficiary is considered a special needs individual.

b.) The designated beneficiary's death.