How to withdraw funds from a my529 account

As your clients enjoy their summer break, thoughts of school may be a fading memory.

Soon, though, their children will be off to college or a technical school, and they may be ready to access their my529 funds to pay for qualified higher education expenses.

Depending on your level of limited power of attorney authorization, you may be able to withdraw funds on behalf of your clients. Here is a quick primer on the withdrawal process.

Withdrawing funds is easy and can be done either online through Advisor Access at advisor.my529.org or by mailing/faxing a Withdrawal Request (Form 300) to our offices.

Either way, it is a simple process.

  1. Choose whether it is a partial or full-balance withdrawal.
  2. Select who will receive the funds—the account owner, the beneficiary or the eligible educational institution directly.
  3. Indicate if it is a qualified or nonqualified withdrawal.
  4. Make the withdrawal request.

Note regarding K-12 tuition withdrawals
my529 funds can be used for kindergarten through 12th grade (K-12) tuition expenses only at a public, private, or religious school. Withdrawals for K-12 tuition expenses cannot exceed a total of $10,000 per calendar year per beneficiary from all 529 accounts (regardless of who owns the account).

my529 distributes withdrawals to pay for K-12 tuition expenses only to the account owner.

What is a qualified higher education expense?

  • Tuition, fees, books and supplies
  • A computer, peripheral equipment, computer software, internet access, and related services when used by the beneficiary while enrolled at an eligible educational institution
  • Room and board for students enrolled at least half time
  • Expenses incurred by a student with special needs in connection with enrollment or attendance