When it's time to pay college bills, you have three ways to make a withdrawal:
By U.S. mail:
Important information about withdrawals
Please allow ten business days (plus mailing time, if applicable) for the funds to arrive.
Some colleges and universities now require a student identification number (ID) on withdrawal checks. If you request a withdrawal online, include the student ID in the "Memo" field. If you mail your request, include the student ID in Section 3 of the Withdrawal Request Form. If this information isn't included, it could delay the crediting of your payment to your student's account.
All qualified withdrawals requested online or by phone may be sent to the account owner, the student beneficiary, or the school by check, or to the account owner electronically (if bank instructions are established on your account). If you intend to add or change bank information, please factor in a 15-calendar-day verification period, during which assets can't be sent to the bank.
You do not have to pay federal or Iowa state income taxes on distributions from your account if the funds are used for qualified higher-education expenses. The earnings portion of nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements. For additional information, consult a tax advisor.
A Form 1099-Q will be generated by the program in January of the calendar year following a year in which there was a withdrawal from the account.
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Investment returns are not guaranteed, and you could lose money by investing in the College Savings Iowa 529 Plan.
For more information about the College Savings Iowa 529 Plan, obtain a Program Description online or request one by calling 888-672-9116. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor.
If you are not an Iowa taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
College Savings Iowa is an Iowa trust sponsored by the Iowa State Treasurer's Office. The Treasurer of the State of Iowa sponsors and is responsible for overseeing the administration of the College Savings Iowa 529 Plan. The Vanguard Group, Inc., serves as Investment Manager and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists the Treasurer with marketing and distributing the Plan. Upromise Investment Advisors, LLC, provides records administration services. The Plan's portfolios, although they invest in Vanguard mutual funds, are not mutual funds.
The Upromise service is an optional service offered by Upromise, Inc., and is separate from College Savings Iowa. Terms and conditions apply to the Upromise service. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. Go to www.upromise.com to learn more.
College Savings Iowa and the College Savings Iowa logo are trademarks of the State of Iowa. The Upromise Investments logo is a registered service mark of Upromise Investments, Inc. Ugift and Upromise are registered service marks of Upromise, Inc. Vanguard and the ship logo are trademarks of The Vanguard Group, Inc.
© 2014 State of Iowa.