You’ve been saving, and now you’re ready to make a withdrawal.
Here’s what you need to know.
How to withdraw funds
- Online. Log in to Account Access. Click Withdrawals. Funds can be deposited electronically into your or your beneficiary’s bank account.
- Mail or fax. Submit a Withdrawal Request form (Form 300). You can instruct my529 to mail a check to you, your beneficiary, the school where your beneficiary is enrolled, to another 529 college savings plan, or to an ABLE account. Withdrawals to pay for K-12 tuition expenses will be sent only to the account owner.
- Some withdrawals may require a signature guarantee. Read the Program Description for more information.
- my529 is required by federal law to issue an IRS Form 1099-Q when funds are withdrawn from an account. Read the Program Description for more information.
Qualified higher education expenses
- Tuition, mandatory fees, textbooks, supplies, and other equipment required to attend any college, university, or technical school in the United States or abroad that participates in federal financial aid for students.
- Computers, peripheral equipment, educational software, and internet access and related services when used primarily by the beneficiary while enrolled at an eligible educational institution.
- Room and board expenses, if they do not exceed the amount specified in the cost of attending the school where your beneficiary is enrolled at least half-time. Read the Program Description for more information.
- Services a special-needs beneficiary must have in order to enroll and attend a post-secondary school.
- K-12 tuition expenses at public, private, or religious schools
Examples of nonqualified expenses
- Room and board expenses that exceed amounts specified in the cost of attending the school where your beneficiary is enrolled
- Travel and transportation expenses
- Student loan payments
- Insurance payments
- Sports and entertainment expenses
- Fraternity and sorority fees
Tax penalties for nonqualified withdrawals
- The earnings portion of a nonqualified withdrawal is subject to federal income tax and—for Utah residents—Utah state income tax.
- The earnings portion of a nonqualified withdrawal is also subject to an additional 10 percent federal tax penalty, except in limited circumstances—a beneficiary’s death, disability, receipt of a scholarship, or attendance at a U.S. service academy.
- Utah residents may be required to repay any previously claimed Utah state income tax credit or deduction.
- Consult with your tax advisor about what constitutes a qualified withdrawal.
If your beneficiary decides not to go to college
You can transfer the funds in your account to another beneficiary who is a member of the previous beneficiary’s family.
Read the Program Description for more information.