Path2College 529 Plan

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Your Smart Savings Are About to Pay Off

Sep 15, 2020

Saving isn’t easy. But at the beginning of the 2020 school year, all your planning, discipline and dedication are about to pay off!

We know this is an exciting and unique time for your family, so here are a few helpful tips as you make your initial Path2College withdrawals.

  1. Remember, funds can be used on things like room and board, laptops, internet expenses and more. Recent tax law changes also allow funds to be used to pay student loan debt for the beneficiary or siblings. Click here for more details on qualifying expenses and institutions.
  2. Spend the money you withdraw during the same calendar you incur the qualified expenses. Also, save receipts and documentation for your qualified expenses for tax purposes.
  3. Most account holders enjoy the ease and speed of online withdrawals, but you can request them through the mail or over the phone as well. Step-by-step withdrawal instructions can be found here.
  4. If you are sending funds directly to the school, plan ahead and allow 7-10 days for the check to arrive by standard delivery, or elect priority delivery for the check to arrive in three business days (note: a $15 fee will apply for priority delivery).
  5. If you are sending funds to yourself, allow additional time if you recently updated your bank account information or mailing address. Click here to learn more.
  6. If you receive a refund from the school and you used your Path2College account to pay for the refunded amount, you can avoid any tax consequences if you re-contribute the refunded amount to your account within 60 days of the refund.

Always know that dedicated Path2College savings specialists are available to offer assistance or answer questions you may have about the withdrawal process. You can reach one Monday – Friday 8:00AM to 8:00PM ET at 877-424-4377.

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