When Education Takes Flight
Withdrawals
Alaska 529 makes it easy to use your savings when you're ready, with flexible withdrawal options for every student's path.
When it's time to use your savings
Whether your child has chosen to attend a university or a trade school, locally or out of state, we have the information you need to help you to take a distribution quickly and securely from your Alaska 529 account.
Your withdrawal options
Your Alaska 529 account offers multiple withdrawal options, allowing you to access your money anytime through our simple distribution processes. Choose the method that is easiest for you.
Send directly to a participating school
Alaska 529 offers a convenient way to send your savings directly to a school electronically. 1 You can choose to receive notifications about the status of your payment, so you can keep track of the timing. Electronic payments to schools are often the fastest and most secure way to pay your school tuition, room and board, and most other school-initiated fees.
How fast will my savings arrive?
Electronic payments to schools are processed in real time, and the funds typically arrive within one to two days.
How do I send my withdrawal electronically to a participating school?
- Log in to your account.
- Select the beneficiary that you are making a withdrawal for, and click "Make a Withdrawal."
- Select “Directly to the college or school” under “To whom should we send the funds?”
Our network of participating schools is growing all the time, with hundreds of schools participating. If you school does not participate at this time, you will be prompted to either make a withdrawal to your bank account or to send your funds by check.
Students attending the University of Alaska can request that their withdrawal be sent electronically (and without a fee) to their student account. To initiate the withdrawal, please call a customer service representative at 1-888-425-2752 or mail in a completed Withdrawal Request Form. Funds sent electronically should arrive within three to five days.
1A $10 fee will be applied for direct-to-school transfers.
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Electronic Transfers to a Bank Account
Transfers to a bank account offer the benefits of fast and efficient distribution processing and enhanced security.
How fast will my savings arrive?
Electronic payments to bank accounts are processed in real time, and the funds typically arrive within three to five days.
How do I send my withdrawal to a bank account?
- Log in to your account.
- Select the beneficiary that you are making a withdrawal for, and click "Make a Withdrawal."
- Select “To Account Owner” or “To beneficiary” under the “To whom should we send the funds?” option.
If you haven't already added your bank information, please know that you will need to do that prior to requesting a withdrawal to avoid any delays.
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Send a Check
You can choose to send either a regular check or an expedited check with priority.2
How fast will my check arrive?
- 7-10 days if you chose standard mail.
- 3 days if you choose priority mail.
How do I send my check directly to a school?
- Log in to your account.
- Select the beneficiary that you are making a withdrawal for, and click “Make a Withdrawal.”
- Select “To Account Owner” or “To beneficiary” under the “To whom should we send the funds?” option.
If you prefer not to complete the check process online, you can download, complete, and mail in the Withdrawal Request Form.
2A $25 fee will be applied to priority checks.
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UA portfolio withdrawals
All requests for withdrawals from the UA Portfolio must be made by calling 1-888-425-2752 or by completing the Withdrawal Request Form. If the student is enrolled at UA, the funds will be sent to the school electronically. Students enrolled elsewhere may choose to receive funds through their bank account on file or by check.
Funds sent electronically should arrive within three to five days.
Withdrawal Questions
You can take withdrawals from your account at any time. Withdrawal requests can be submitted online, by mail with the Withdrawal Form, or by calling 1-888-425-2752.
Where and how withdrawals are issued varies depending on the withdrawal method selected.
- Withdrawals can be submitted online by logging in to your account and selecting “Make a Withdrawal” from the beneficiary dashboard.
- Withdrawals can be requested through the Withdrawal Form.
- Withdrawals can be requested by phone at 1-888-425-2752.
When requesting a withdrawal, you can choose to send it directly to a participating school or send it electronically to a bank account on file. You may also request a check payable to the account owner, to their beneficiary, or to an eligible educational institution.
It is important to note that tax reporting of a withdrawal is dependent on the payee of the withdrawal. If a withdrawal is made payable to the account owner, the tax reporting will be issued under the account owner's Social Security number, and a Form 1099-Q will be mailed to the account owner's address on file. If the assets were made payable to the beneficiary or school, the tax reporting will be issued under the beneficiary's Social Security number, and a Form 1099-Q will be mailed to the beneficiary's address on file.
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For colleges or universities, graduate schools, apprenticeship programs, and technical/vocational schools:
There are no withdrawal minimums or maximums.
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For K-12 tuition for public, private, or religious schools:1
In order for the withdrawal to be federally tax-free, the withdrawal maximum is $10,000 per year per beneficiary across all 529 accounts. Withdrawals exceeding the annual maximum for this purpose may be considered nonqualified, and any associated earnings may be taxed and penalized.
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For education loan repayment:
The lifetime maximum for withdrawals from a qualified education loan is $10,000 for each eligible individual. Withdrawals exceeding the lifetime maximum may be considered nonqualified, and any associated earnings may be taxed and penalized.
We do not require receipts of qualified education expenses. Rather, it is the taxpayer's responsibility to substantiate a qualified withdrawal to the IRS. Therefore, it is important to maintain accurate records concerning your withdrawals, which could include receipts and other documentation of education-related expenses.
If you take a withdrawal for something other than a qualified education expenses, the earnings portion is subject to federal income taxes and may be subject to a 10% federal tax penalty. State tax treatment varies. Exceptions to the federal penalty apply for nonqualified withdrawals that are taken under the following circumstances:
- Receipt of a scholarship by the beneficiary (up to the amount of the scholarship)
- Death of the beneficiary
- Disability of the beneficiary
- Attendance at a U.S. military academy (up to the cost of attendance at the academy)
If your beneficiary has any unused savings, you have:
Options without tax consequences:
- Change the beneficiary to an eligible family member.
- Keep your savings in the account in anticipation of future education expenses, such as graduate school.
- Roll over your savings into a beneficiary-owned Roth IRA. You can request a rollover of leftover 529 savings in a 529 college savings plan account to a Roth IRA maintained for the same account beneficiary with a Rollover to Roth IRA Form. The 529 plan account must have been maintained for at least 15 years, and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit, and there is an aggregate limit of $35,000. Please read and/or download the Plan Disclosure Document for additional information. If you have questions about your specific situation, please speak with a tax professional.
Option with a tax consequence:
- Request a nonqualified withdrawal. Please note that earnings on a withdrawal not used for qualified expenses may be subject to income taxes and a 10% federal penalty.
To determine how many University of Alaska portfolio credits you have in your account, check your quarterly statement. You can log in to view a copy of your statement or call us at 1-888-425-2752 to get this information.
You can roll over unused 529 savings to a Roth IRA maintained for the same account beneficiary with a Direct Rollover Out to Roth IRA Form.
The 529 plan account must have been maintained for at least 15 years, and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit, and there is an aggregate limit of $35,000. Please read and/or download the Plan Disclosure Document for additional information. If you have questions about your specific situation, please speak with a tax professional.
