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Paying for College Expenses With Your tomorrow's scholar® Account
To request a distribution from a tomorrow's scholar account, the account owner needs to
complete a tomorrow's scholar
Distribution Request Form. If the account has the Redemption option, the
account owner may also request a distribution over the telephone by calling
1-866-677-6933 or logging in to Online Account Access. (Distributions done online will be sent by check to the address of record.)
An account owner may add the Redemption Option feature
at any time by completing the tomorrow's scholar 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 outside of
the U.S.). Eligible expenses include tuition, fees, supplies, books, and
required equipment. In addition, certain room and board costs are included.
Search list of eligible schools.
Beneficiaries must be enrolled at least half-time at a post-secondary institution for room and board expenses to be considered an eligible education expense. 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 is based on a stated "cost of attendance" provided by each institution. This allows for more realistic distributions in areas where the cost of living is higher.
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 tomorrow's scholar 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.
What is a Medallion Guarantee?
A Medallion Guarantee is designed to protect clients and financial institutions
against fraudulent transactions by unauthorized persons. You may obtain
one from your local bank or credit union.
You will need a Medallion Guarantee if you choose to have a distribution
sent to anyone other than the account owner or beneficiary at their current
address on file or an eligible educational institution.
Questions?
If you have any questions, contact us at 1-866-677-6933.
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