For the taxable year in which a distribution is received, all of the following amounts distributed from a college savings account, as described in s. 224.50: a.
(a)#
To the extent that the receipt of the amounts by the owner or beneficiary of the account results in a penalty as provided in 26 USC 529 (c) (6), any amount that was not used for qualified higher education expenses, as defined in 26 USC 529 (c) (7), (8), and (9) and (e) (3), and was contributed to the account, except that this subd. 26. a. applies only to amounts for which a subtraction was made under par. (b) 32. or 32m. For purposes of this subd. 26. a., a first in, first out method of accounting shall apply to the account.
(b)#
Any amount rolled over by an owner into another state’s qualified tuition program, as described in 26 USC 529 (c) (3) (C) (i), to the extent that the amount was previously claimed as a deduction under par. (b) 32. or 32m. For purposes of this subd. 26. b., a first in, first out method of accounting shall apply to the account.
(c)#
To the extent that an amount is not otherwise added back under this subdivision, any amount withdrawn from the account for any purpose if the withdrawn amount was contributed to the account within 365 days of the day on which the amount was withdrawn from the account and if the withdrawn amount was previously subtracted under par. (b) 32. For purposes of this subd. 26. c., a first in, first out method of accounting shall apply to the account.