Receiving Distributions
Funds can transfer out of accounts via mailed check, ACH, or wire. The account owner, the beneficiary, an eligible educational institution, or another qualified 529 plan may be named as a payee.
The IRS requires that withdrawals are taken proportionally from principal and investment earnings–you can’t just take original deposits like is possible for a Roth account.
For K-12 expenses, Utah’s my529 will issue a check only to the account owner.
Christine links a new credit union account called “Education” under her name for distributions for her children, keeping careful statements of charges for future qualified expense proof.
Why would I use this for my kindergartener? You don’t “need” to use it. You can wait for later college or vocational or beauty school. You also don’t need to use it for post graduate school (K-12 only or a later Roth).
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.