Can I contribute a refund from an eligible educational institution into my DreamAhead account?
Yes, you can make a re-contribution by using the Contribution form if the refund is from an eligible educational institution and it was originally used by the beneficiary to cover a qualified expense.
The re-contribution must be made within 60 days of receiving the refund and the amount must not exceed the refund amount. Due to COVID-19 the recontribution period is the later of 60 days from receipt of the refund or July 15.
Once the re-contribution is complete, it will not be considered as gross income for federal tax purposes; however, the original distribution will be reported on your 1099-Q federal tax form.