Can I take a non-penalty but tax required withdrawal from a 529 plan against a grant? It is clear I can take such a withdrawal against a scholarship, but it is less so for a grant.
Pell grants are specifically mentioned on Fidelity’s 529 page here - what sort of grant were you (or your beneficiary) awarded? Is it a tax-free award? Page 5 of this IRS document covers how grants are dealt with with 529s.