The distributee is the person who actually receives the money from the 529 plan. You generally have three options when requesting a distribution from a §529 plan:
- a check or ACH made payable to the account owner,
- a check or ACH made payable to the student, or
- a payment made directly from the §529 plan to the student's college.
Option 1 means the parent is the distributee; options 2 and 3 means the student is the distributee. The distributee is the one who will receive the 1099-Q and is responsible for reporting any taxable earnings.