Got the 1099-Q on January 16th. The basis and earning were reported correctly, to the penny.My experience is that the sending 529 sends the contribution & earnings info, and the receiving 529 keeps track of it. Last year I requested a transfer from Nevada Vanguard 529 to Fidelity NH 529 and Fidelity's acknowledgement letter included this:
I suspect the receiving 529 would just treat it all as contribution. ...Emphasis mine -- by default it seems they treat it as all earnings not all contributions. If they treated it as all contributions that would be a great way for people to avoid paying tax on the earnings in the event of a non-qualified withdrawal!Additionally, we requested a statement showing the earnings portion of your rollover distribution. Until we receive appropriate documentation reflecting the earnings portion of the contribution, we must treat the entire amount of the rollover contributions as earnings in the 529 account. If the rollover check or the earnings statement is mailed directly to you, please forward to us at the address below. (The check should be made payable to Fidelity Brokerage Services LLC.)
As it turns out, Vanguard send Fidelity the contribution & earnings information. Fidelity is using the information -- the "Positions" table in my Fidelity 529 account shows the cost basis per share; multiplying by #shares produces a total basis that matches the contribution amount.
I made a withdrawal this year, so come February 2026 when Fidelity sends a 1099-Q I'll find out if they correctly report the basis and earnings.
Statistics: Posted by sycamore — Fri Jan 30, 2026 12:56 pm — Replies 8 — Views 826