Help prepare your clients for my529 withdrawals

Before we know it, fall semester will be here and your clients will be getting ready to send their children (and tuition checks) off to school. You can prepare yourself, and your clients, for these withdrawals now. Here are a few items and resources to help you feel better equipped to schedule withdrawals from my529 accounts.

Withdrawals—a quick review

In order for you to make withdrawals on your client’s behalf, you must have Level 3 access on the my529 account. With that access, you can make a withdrawal via check or, with one additional step, an ACH electronic transaction. If you choose to send a check, you may send it to either the account owner, the beneficiary or a school,* whereas if you choose ACH, you may only direct it to the my529 account owner. You can make these requests by submitting a Withdrawal Request (Form 300) or by requesting the withdrawal online.

Electronic withdrawals

To set up electronic withdrawals, you will need to have your clients pre-authorize and link their bank or credit union account to their my529 account. Brokerage accounts cannot be linked to my529 accounts. It can take a few days for their bank or credit union account to be verified, so the earlier they take this step, the smoother the electronic withdrawal process.

For an ACH withdrawal, your clients must grant your firm the authority to make withdrawals for them after they have linked their bank account. Both items must be complete before you can initiate a withdrawal for your client. A step-by-step guide is available for advisors and account owners here.

Is everything up to date?

Encourage your clients to check their account owner information, including their address. Updated information is important to prevent any delays in processing withdrawals. You can view contact information for your client online through your financial advisor portal. If you find any outdated information, please have your client fill out and submit Form 500 (Account Information Update).

Our team is always here to help with any questions. Contact us at 888-529-1886.

Schedule time to meet with my529’s Professional Services team:

https://calendly.com/advisorinfo

 

*Please allow at least two weeks for a withdrawal to post to the student’s account at the school.