<p>Rentof2, about distributions from 529. I have one and my daughter is the beneficiary. I included it in my profile and fafsa assets so it’s part of my eccentric for freshman year. When we use it first to pay for the first semester of freshman year, my daughter has to include it in her income for when we do it all over again for sophomore year? That makes no sense. Its like being penalized for saving for college. Its not a regular 529, but PA TAP where you freeze price of credits at value at time of investment.</p>