Thanks for making this point. I agree: this "requirement" of same-year-use-and-withdrawal is typically stated as established fact but it is not presently based in any law or enforceable memorandum. I've tried to find details on what happened with that 2008 notice in terms of it fizzling out, but couldn't pick up the trail.There is no requirement that you need to match years for expenses and 529 distributions.
The IRS acknowledges as much in their 2008 Advance Notice of Proposed Rulemaking that was never promulgated:
Statistics: Posted by aleph0 — Sun Sep 01, 2024 7:39 pm