Do you need to access your account for college expenses? Please follow one of the steps below.
- If you have already completed the paperwork for the Redemption Option, as account owner, you may request a distribution by phone at 1-888-338-3789, or by logging in to your account online. Distribution transactions completed online will be sent by check to the address of record. Distributions completed over the phone can be sent to the address of record or to a bank account on file.
- If you do not have the Redemption Option on your account, please complete a Distribution Request Form. (Or, add the Redemption Option feature to your account at any time by completing the Account Change Request Form.)
What can the money be used for?
The money in your account can be used to pay for qualified higher-education expenses at any eligible college, university, vocational school, or other post-secondary institution in the country, as well as some schools outside of the U.S. (You can search for a specific school's eligibility here.) Eligible expenses include tuition, fees, supplies, books, required equipment, and certain room and board costs.
For room and board to be considered an eligible education expense, your beneficiary must be enrolled at least half-time at a post-secondary institution. If the beneficiary lives in housing operated by the educational institution, the cost cannot exceed what is normally assessed for most students. The limit for room and board cost is based on the school’s stated "cost of attendance", which allows for more realistic distributions in areas where the cost of living is higher.
New for 2009 and 2010 – Qualified expenses now also include the purchase of computer technology, equipment, or Internet access and related services paid for or incurred in 2009 or 2010. The technology, equipment, or services must be used by the beneficiary and their family during any of the years the beneficiary is enrolled at an Eligible Educational Institution.
How is the money taxed when I withdraw it?
If the funds are used for qualified college expenses, your withdrawal is federal tax free. Wisconsin residents will owe no state income tax on qualified withdrawals. If you reside in another state, consult your tax advisor for state tax information. Please note that as the EdVest account owner, you are responsible for keeping records and reporting any taxable distributions to the IRS. Please consult your tax advisor if you have questions about your particular situation.
Can a distribution be sent to someone other than the account owner?
A distribution can be sent to the account owner or the beneficiary at their current address on file, or to an eligible educational institution. For any other distribution, a Medallion Guarantee will be needed on the Distribution Request Form. The Medallion Guarantee is designed to protect clients and financial institutions against fraudulent transactions by unauthorized persons, and it can be obtained from your local bank or credit union.
Questions?
If you have any other questions, contact us at 1-888-338-3789.