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Is a settlement payment to a 529 plan 1099-reportable?
July 26, 2022
Q. We are a risk management company that issues settlement payments. We have been asked to issue a settlement payment to a 529 plan. Do we treat this as a taxable settlement and ask for a W-9? Would we issue 1099 to the claimant or the 529 plan for the amount of the settlement payment made to the plan? The claimant is an individual payee.
A.
(Answered by a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2,…
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