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Withdraw
You’ve been saving, and now you’re ready to make a withdrawal.
Things to remember
Withdrawal methods
- Online.
- Mail.
Be sure withdrawals are for qualified expenses.
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How to withdraw funds
- 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.
- 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 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- my529 is required by federal law to issue an IRS Form 1099-Q when funds are withdrawn from an account.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.
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.