The Moment You've Been Saving For

You can take withdrawals from your account at any time. Withdrawal requests can be submitted online, by mail with a Withdrawal Form, or by calling 866-521-1894.

Where and how withdrawals are issued varies depending on the withdrawal method selected.

• Withdrawals can be submitted online by logging in to your account and selecting “Make a Withdrawal” from the beneficiary dashboard.
• Withdrawals can be requested through the Withdrawal Form.
• Withdrawals can be requested by phone.

When requesting a withdrawal, you can choose to send it directly to a participating school or send it electronically to a bank account on file. An account owner may also request a check payable to the account owner, to their beneficiary, or to an eligible educational institution.

It is important to note that tax reporting of a withdrawal is dependent on the payee of the withdrawal. If a withdrawal is made payable to the account owner, the tax reporting will be issued under the account owner's Social Security number, and a Form 1099-Q will be mailed to the account owner's address on file. If the assets were made payable to the beneficiary or school, the tax reporting will be issued under the beneficiary's Social Security number, and a Form 1099-Q will be mailed to the beneficiary's address on file.

• For colleges or universities, graduate schools, apprenticeship programs, and technical/vocational schools:

  There are no withdrawal minimums or maximums.

• For K-12 tuition for public, private, or religious schools:¹

  In order for the withdrawal to be federally tax-free, the withdrawal maximum is $10,000 per year per beneficiary across all 529 accounts. Withdrawals exceeding the annual maximum for this purpose may be considered nonqualified, and any associated earnings may be taxed and penalized.

• For education loan repayment:

  The lifetime maximum for withdrawals from a qualified education loan is $10,000 for each eligible individual. Withdrawals exceeding the lifetime maximum may be considered nonqualified, and any associated earnings may be taxed and penalized.

We do not require receipts of qualified education expenses. Rather, it is the taxpayer's responsibility to substantiate a qualified withdrawal to the IRS. Therefore, it is important to maintain accurate records concerning your withdrawals, which could include receipts and other documentation of education-related expenses.

If you take a withdrawal for something other than a qualified education expense, the earnings portion is subject to federal income taxes and may be subject to a 10% federal tax penalty. State tax treatment varies. Exceptions to the federal penalty apply for nonqualified withdrawals that are taken under the following circumstances:

• Receipt of a scholarship by the beneficiary (up to the amount of the scholarship)
• Death of the beneficiary
• Disability of the beneficiary
• Attendance at a U.S. military academy (up to the cost of attendance at the academy)

If your beneficiary has any unused savings, you can:

Options with a tax consequence:

• Request a nonqualified withdrawal. Please note that earnings on a withdrawal not used for qualified expenses may be subject to income taxes and a 10% federal penalty.

Options without tax consequences:

• Change the beneficiary to an eligible family member.
• Keep your savings in the account in anticipation of future education expenses, such as graduate school.
• Roll over your savings into a beneficiary-owned Roth IRA. You can request a rollover of leftover 529 savings in a 529 college savings plan account to a Roth IRA maintained for the same account beneficiary with a Rollover to Roth IRA Form. The 529 plan account must have been maintained for at least 15 years, and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit, and there is an aggregate limit of $35,000. Please read and/or download the Plan Disclosure Document for additional information. If you have questions about your specific situation, please speak with a tax professional.

You can roll over unused 529 savings to a Roth IRA maintained for the same account beneficiary with a Rollover to Roth IRA Form.

The 529 plan account must have been maintained for at least 15 years, and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit, and there is an aggregate limit of $35,000. Please read and/or download the Plan Disclosure Document for additional information. If you have questions about your specific situation, please speak with a tax professional.