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:

  1. 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.
  2. There may be federal and state income tax consequences.
  3. 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.

Related Topics

The Pennsylvania 529 College Savings Program sponsors two plans-the Guaranteed Savings Plan (GSP) and the Investment Plan (IP). The guarantee of the PA 529 Guaranteed Savings Plan is an obligation of the GSP Fund, not the Commonwealth of Pennsylvania or any state agency. Before investing in either plan, please carefully read that plan's disclosure to learn more about that plan including investment objectives, risks, fees, and tax implications.