Are you getting ready to withdraw funds for the first time?
If so, you’ll find you can make a withdrawal online or by mail. But there are few things to be aware of. Withdrawals fall into three categories: qualified, taxable and non-qualified. You can find out more about the differences here. Only qualified withdrawals may be made without federal income tax or penalties.
What You’ll Need for an Online Withdrawal
If you haven’t already set up a bank account to receive the funds, for either yourself or the beneficiary, you will need to Update Your Account Information with the following details:
- Checking or savings account number
- Bank routing number
- Name as it appears on the account
- Bank’s name
Otherwise, you will receive the withdrawal funds by check.
It’s important to keep in mind you won’t be able to withdraw a contribution until 8 business days after receipt of that contribution. Please note, if you change:
- Your mailing address, you won’t be able to make a withdrawal for 20 business days
- Banking information, you won’t be able to make a withdrawal for 30 business days
- Add a new bank account, you won’t be able to make a withdrawal for 30 business days
Or transfer the account to a new owner, no withdrawals may be made for 30 days. Additional requirements may apply to requests of $100,000 or more.
How to Do It Online
1. Login to your account Online. Once you’ve logged in, you will go directly to the withdrawal page.
2. Select type of withdrawal:
- qualified withdrawal
- non-qualified withdrawal
- withdrawal to pay expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school
- non-qualified withdrawal
3. Select where the funds will be sent:
- Participant – Select bank account and certify, or if by check select the Delivery speed and complete the Check Memo
- Beneficiary – Select bank account and certify, or if by check select the Delivery speed and complete the Check Memo
- College or University – Select the Delivery speed, enter the College name and address, and type the Student ID in the Check Memo field
4. Select “Partial” or “Total” account balance withdrawal.
5. If you have more than one investment portfolio select “Prorated amount” or “By specific portfolio”
6. Enter the Withdrawal Amount(s).
7. Verify withdrawal information is correct (type, delivery method, investment portfolios, and amount).
8. Select “Submit” and you’re done!
What You’ll Need to Make a Withdrawal by Mail
- If you wish to transfer funds by an Electronic Funds Transfer, you will need either your bank account or the beneficiary’s bank account information, including:
- Checking or savings account number
- Bank routing number
- Name as it appears on the account
- Bank’s name and telephone number
- A printed copy of the Withdrawal Request Form
Otherwise, you will receive the funds by check.
How to Do It
1. Download and complete the form.
2. Be sure to verify your account information is correct.
3. Select the type of withdrawal.
4. Select the amount of withdrawal.
5. Select the investment portfolios you want to withdraw the funds from.
6. Optionally, you may indicate that you want to make systematic withdrawals. Fill this section in if so.
7. Choose recipient type as either yourself, the beneficiary, or the school.
8. Choose the form of payment.
9. If by EFT, funds will be sent to the Account Owner’s bank on file.
10. If by check, fill in the recipient’s address.
Sign and mail in the completed form and you’re done!
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