Withdrawals

You’ve been saving, and now you’re ready to make a withdrawal

Here’s how

  • Online. Log in to your my529 account. Click “Withdrawals” and follow the prompts. Funds can be deposited electronically into your or your beneficiary’s bank account.
  • Secure electronic payment. Send an electronic payment that arrives directly to the school within approximately 2-3 business days. The expedited service costs $3.50 per transaction. Electronic payments can only be completed online. Track the payment status on the Transactions page of your online account. Note: Not every higher education institution participates. K-12 institutions are not included.
  • Prepaid card. my529 offers the my529 Access Discover® Prepaid Card. Once you apply* and set up your my529 Access Card online, you will be able withdraw money from your my529 account and transfer it to the my529 Access Card to pay for education expenses. Click here for more information about the my529 Access Card.
  • 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 for student loan repayments and apprenticeships can go to the account owner or beneficiary. 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  • my529 is required by federal law to issue an IRS Form 1099-Q when funds are withdrawn from an account.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.

    *IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW MY529 ACCESS CARD ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens a Card Account. What this means for you: When you open a Card Account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see a copy of your driver’s license or other identifying documents.

    The my529 Access Discover® Prepaid Card is issued by Central Bank of Kansas City, Member FDIC. Discover and the Discover acceptance mark are service marks used by Central Bank of Kansas City under license from Discover Financial Services. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and Fee Schedule at my529accesscard.com. If you have any questions regarding the Card or such fees, terms, and conditions, you can contact us 24/7/365 toll-free at 1.844.545.0805.
withdrawing from a 529

Be sure your withdrawals are for qualified expenses.

What is a qualified Expense?

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.
  • An account owner who is a Utah taxpayer must pay Utah state income tax on the earnings portion of a nonqualified withdrawal in addition to paying federal income tax and penalties. The Utah account owner must also add back the amount of the nonqualified withdrawal as income on their Utah state income tax form for the taxable year the nonqualified withdrawal was made. (If contributions were made for the current or a prior year and the taxpayer did not receive a my529 credit, no addback is required for a nonqualified withdrawal.)
  • 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.

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Important Legal Notice

Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing. For a copy of the Program Description, call 800.418.2551 or visit my529.org.

Account Value. Investments in my529 are not insured or guaranteed by my529, the Utah Board of Higher Education, the Utah Education Savings Board of Trustees, any other state or federal agency, or any third party. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-Insured investment option. In addition, my529 offers investment options that are partially insured for the portion of the respective investment option that that includes FDIC-insured accounts as an underlying investments. Units in my529 have not been registered with the United States Securities and Exchange Commission or with any state securities commission.

FDIC insurance is subject to limits set by federal law. Click here for more information about FDIC Insurance.

Non-Utah Taxpayers and Residents. The state in which you or your beneficiary pay taxes or live may offer a 529 plan that provides state tax or other benefits, such as financial aid, scholarship funds, and protection from creditors, not otherwise available to you by investing in my529. You should consider such benefits, if any, before investing in my529.

Consult an advisor. my529 does not provide legal, financial, investment, or tax advice, and the information provided on this website does not contain advice and cannot be construed as such or relied upon for those purposes. You should consult your own tax or legal advisor to determine the effect of federal and state tax laws on your particular situation.

Morningstar rating. A Morningstar Analyst Rating for a 529 college savings plan is not a credit or risk rating. Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions. Morningstar does not represent its analyst ratings to be guarantees. Please visit Morningstar.com for more information about the analyst ratings, as well as other Morningstar ratings and fund rankings.

my529 does not pay commissions, loads or sales charges to financial advisors nor does it endorse financial advisors.

Information on this website is believed to be accurate when posted and is qualified in its entirety by the Program Description.