Can I access my account for purposes other than paying for higher education (non-qualified withdrawals)?
Yes. You can access the funds in your account at any time for any reason.
A withdrawal used to move your funds to another 529 plan is called a "transfer" (if from the GSP to the IP or vice versa) or "rollover" (if to another state's 529 plan). A withdrawal for any reason other than paying for qualified expenses is called a "non-qualified withdrawal." There are several factors to consider prior to making a transfer, rollover, or non-qualified withdrawal:
- If made from a PA 529 GSP account, the growth on contributions used for these types of withdrawals is calculated differently and often is less than growth on contributions used for qualified withdrawals.
- There may be federal and state income tax consequences.
- The number of transfers, rollovers and non-qualified withdrawals that may be taken in a given period of time may be limited. See the appropriate Disclosure Statement for more information.
You can request most non-qualified withdrawals online by logging into your account and clicking on the "Account Management" link and then "Make a Withdrawal." Simply follow the withdrawal flow for the appropriate non-qualified withdrawal type. You may also request a non-qualified withdrawal in writing by submitting a signed letter of instruction, with any necessary documentation, to our processing center. You may fax or mail your request to our office.
To request a transfer, simply send us a signed letter of instruction detailing your request.
Non-qualified withdrawals processed online may take 5-7 business days to complete and withdrawals completed by paper may take 14 business days to complete.
- What are qualified education expenses?
- Do I have to use my savings at a Pennsylvania college or university?
- What are eligible educational institutions?
- Can I access my account for purposes other than paying for higher education (non-qualified withdrawals)?
- What happens if my child does not attend college?
- Who can access my account?
- When I send mail regarding my account, it goes to Massachusetts, not Pennsylvania. Wouldn't it be more direct to send it in-state?