Prior year scholarship withdrawal from 529

[bjrap00]

I forgot to withdraw funds from 529 in prior years for national merit scholarship. Can I withdraw funds now for prior years? (prior to 2018)

[chb088]

I don’t think so. Funds have to be withdrawn during the year they are used.

[thumper1]

This was posted as an answer by @BelknapPoint on your other identical thread.

If OP is asking about withdrawing non-qualified 529 funds now based on scholarships received in prior years and paying income tax on the earnings but claiming an exception for the 10% additional tax (“penalty”), than yes, the general consensus is that you can do that.

See “Mistake #6” in the linked article:

Don't Make These Mistakes When Reporting 529 Plan Withdrawals