Aquí le explicamos cómo prepararse para los retiros de otoño

School is out, grills are fired up, and family vacations are in full swing — it’s officially summer!

But even as you shop for hot dogs and sunscreen, you will likely notice that school supplies are already creeping back into stores.

As parents, it feels like we never really get a break from thinking about our children’s education. I love a good deal on pencils and notebooks for my high schooler, but I am usually not ready to think about returning to the classroom in the fall until at least August.

Sin embargo, si su hijo es estudiante universitario, el verano es el momento perfecto para comenzar a prepararse para retiros calificados de su plan my529. Ya sea que tenga un hijo que se va a la universidad o esté planeando usar los fondos para otros gastos educativos calificados, es útil tener un plan establecido ahora para que haga retiros cuando regrese a clases.

Here are five steps to prepare for fall withdrawals from your my529 plan:

1. Review your needs: Before making any withdrawals, review how much you have saved and how much you will have to withdraw. This will help you avoid taking out more than you might use.

2. Comprenda lo que califica como un gasto de educación: Es importante saber qué califica antes de hacer cualquier retiro. Revise la lista de gastos de educación calificados aquí o en la Descripción del programa.

3. Planifique: La rapidez con la que recibirá su dinero dependerá del método que elija para retirar los fondos. Un cheque puede tardar hasta dos semanas en llegar. Las transferencias electrónicas de fondos generalmente demoran entre dos y tres días hábiles en llegar, pero deberá vincular su banco o cooperativa de crédito a su cuenta my529 antes de la transferencia. También puede enviar fondos directamente a la escuela utilizando nuestro servicio de pago electrónico, que tiene una tarifa de servicio de $3.50.

4. Keep track of expenses: Be sure to keep track of all your qualified education expenses. This will help you stay organized and ensure that you can show the IRS how you used your funds should you face a tax audit.

5. Consider tax implications: When making withdrawals from your 529 plan, it’s important to know the rules on how 529 funds are taxed. While contributions to a 529 plan are made with after-tax dollars, withdrawals are tax-free if they are used for qualified education expenses. If the funds are used for nonqualified expenses, you will be subject to federal income tax and an additional 10% tax on earnings unless an exception applies, and you may be subject to recapture of state tax deductions and income taxes.

Preparing for withdrawals from your my529 account doesn’t have to be stressful. By reviewing your account balance, knowing the rules, planning and keeping track of expenses, you can ensure a smooth and successful my529 withdrawal process. And remember, if you have any questions or need assistance, don’t hesitate to reach out to my529 for help.

Now, go enjoy the rest of your summer!