In Notice 2018-58 the IRS clarified various issues related to changes Congress made in the PATH Act and the Tax Cut and Jobs Act to §529 Education Savings Plan (a “qualified tuition program” or QTP).

Taking the oldest change first, the IRS clarified some issues related to the ability of a taxpayer to return funds to a §529 plan if the taxpayer receives a refund of qualified education expenses. As the IRS notes “This could occur, for example, if the beneficiary were to drop a class mid-semester.”