![]() Grants for Maine Residents have been designed so that the grant funds (including any earnings) will be treated as a scholarship as defined by the Internal Revenue Code. Withdrawing Matching Grants for Maine Residents If the withdrawal was made to your student or their school, it will be sent to student (beneficiary). If the withdrawal was to you, you will receive the form. After taking a withdrawal from your account, NextGen 529 will send out IRS form 1099-Q, typically by February of the year following your withdrawal.If you wire your payment to your school, you must include the fee for wiring (currently $30) in your withdrawal amount. Some schools accept wire transfers, but you’ll pay extra.(NOTE: 529 withdrawals for elementary and secondary tuition can only be made to the account owner.) If the withdrawal is going directly to the school, check to see if they have a dedicated address for mailing 529 payments.Be sure to make your withdrawals in the same year the qualified education expenses will be paid. Plan ahead-start the withdrawal process a few weeks before the bill is due. ![]() Only the account owner can make a withdrawal from the account.You can have withdrawals sent to multiple payees. If you are requesting withdrawals by mail and sending to multiple recipients, complete a Withdrawal Request Form for each recipient.Or, you can transfer funds to your bank account. Withdrawn funds can be distributed a number of ways – by mailing a check to the school, the student, or yourself (the account owner).Make sure your withdrawal is for a qualified education expense.Four-year colleges and universities (public and private).Two-year colleges (often community colleges).There are eligible schools in the United States and overseas. Student loan repayment (total of $10,000, per borrower)Įligible institutions are those accredited educational institutions that participate in federal financial aid programs.Expenses for fees, books, supplies and equipment required for apprenticeship programs (program must be registered and certified with the Secretary of Labor under the National Apprenticeship Act).Elementary and secondary schools tuition (up to $10,000 annually).In addition, other expenses that are qualified higher education expenses for purpose of a 529 plan withdrawal are: Special needs services that are required for enrollment.Room and board (when student attends at least half time), including off-campus expenses. ![]() Computers, software, and internet access. ![]()
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