Preparing for college: my529 Withdrawals
With high school graduations on the horizon, it is a good time to speak with clients who have kids and grandkids approaching college age about how they can use their my529 funds for college, university or technical college.
A quick call or message can let your clients know you have their interests in mind, and can create an opportunity to reconnect.
A few potential talking points:
- Use graduation as a reason to start the conversation.
- It will soon be time to use the funds they have long been investing. You may have advice on how to maximize the use of the funds they have saved.
- my529 funds are flexible. In addition to expected qualified education expenses like tuition and fees, books, and room and board, do they know that their money can also be used for computers, software, and internet access, as well as registered apprenticeships? Plus, funds can be applied toward student loan payments (up to certain limits), too. See my529.org for details.
- Let them know how they can access their funds.
Depending on the level of LPOA access your client has granted, you may be able to initiate withdrawals for your clients.
- Level 3 access authorizes you to withdraw funds on behalf of your client. For an ACH withdrawal, you can submit Form 760, where your client authorizes you to send electronic withdrawals to a bank account. Learn more at advisor.my529.org. What level of authorization do you have? Check here.
- Account owners can also request withdrawals directly by logging in at my529.org.
- Clients can plan ahead for when they will need their my529 funds by requesting withdrawals at least two weeks in advance.
- my529’s customer service is available to field questions at 800.418.2551 or via email at firstname.lastname@example.org.