Vanguard 529 Plan Help
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A. The Vanguard® 529 College Savings Plan is available to any U.S. citizen or resident alien age 18 or over, who wants to open an account to help someone save for college. There are no state residency requirements or adjusted gross income restrictions on participation, but you must have a valid U.S. residence address.A: You can contribute until the account balances for your designated beneficiary (including accounts established by other account owners) reach $500,000. For example, if a parent and grandparent are contributing to a 529 account for the same child, when the combined balance, including any earnings, reaches $500,000, you will not be allowed to make additional contributions. However, your account can still accumulate earnings at that point.A: Yes. Earnings in the Vanguard 529 College Savings Plan grow federally tax-deferred, and qualified withdrawals are federally tax-free. * There are also special gift and estate tax advantages so you can help a child go to college and lessen your tax burden at the same time. State tax treatment of 529 plans varies by state, and there may be advantages to participating in a 529 plan in the state in which you reside. You should consult with a tax adviser. *Earnings on non-qualified 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.A: Vanguard is required by law to obtain certain personal information from you and your beneficiary, which will be used to verify your identities. If you don't provide the requested information, we may not be able to open your account. If we are unable to verify your identify, Vanguard reserves the right to close your account or take other steps we deem reasonable. Your Social Security numbers are also required for tax-reporting purposes.A. Yes. While there can be only one beneficiary named for each account, you can open accounts for different beneficiaries. After you complete the process for one beneficiary, you will be given the opportunity to open other accounts.A: Yes. The same individual can be the beneficiary of multiple accounts. For example, a father, mother, grandparent and uncle of the same child can each open separate accounts for that child.A: Upromise® by Sallie Mae® is a service designed to help families save more for college. When you join Upromise for free, you can earn cash back for college on the things you already do and buy.Upromise is an optional program offered by Upromise, Inc., is separate from Vanguard 529 College Savings Plan, and is not affiliated with the state. Specific terms and conditions apply to the Upromise program. Participating companies, contribution levels, terms and conditions are subject to change at any time without notice. Transfers subject to $25 minimum.A: Balances in a Vanguard 529 College Savings Plan account don't have to be used just for public and private 4-year colleges and universities. They can also be used at trade and technical schools, as well as for qualifying 2-year associate degrees, provided the school or other educational institution is accredited under the rules applicable to 529 plans. If you would like to check a particular school, please visit the Department of Education's website.A: You can pay for any qualified higher education expenses with a 529 plan, including tuition, room, board, fees, books, and supplies. Computers and related equipment, software, and Internet access to be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution are also considered qualified higher-education expenses for tax years beginning after December 31, 2014, as introduced in the Protecting Americans from Tax Hikes (PATH) Act of 2015. Reference the IRS Publication 970.A: As the account owner, you have control over the account and can determine how and when the money is used. Of course, in order to qualify for the most favorable tax treatment, the money must be used for educational purposes consistent with the plan.A: A withdrawal that is used to pay a beneficiary's qualified education expenses isn't subject to federal tax. The earnings portion of a withdrawal that is used for any other purpose is subject to federal income tax. In addition, except to the extent the withdrawal is attributable to the death or disability of, or receipt of a scholarship by, a beneficiary, the earnings portion of any withdrawal that is not used to pay a beneficiary's qualified education expenses is subject to an additional 10% federal penalty.A: A withdrawal from your account up to the amount of the scholarship won't be subject to the 10% federal penalty, although the earnings portion of the withdrawal will be subject to federal income tax. Alternatively, you can change the beneficiary of the account to a qualified family member of the current beneficiary, roll over all or a portion of the account balance to another account in the Vanguard 529 College Savings Plan or another 529 plan for the benefit of such a family member, or leave the money in the account to pay for other qualifying expenses not covered by the scholarship, in each case without federal tax implications.A: You can leave your money in the Vanguard 529 College Savings Plan in the event that your beneficiary decides to attend college at a later date. You can also change beneficiaries to a qualified family member of the current beneficiary without penalty or federal income taxes. Or, you can take the money back by making a non-qualified withdrawal, the earnings portion of which would be subject to federal income taxes, and possibly state tax, as well as a 10% additional federal tax. (Changing beneficiaries to someone other than a qualified family member would be considered a non-qualified withdrawal.)A: If your name is typed incorrectly (e.g., you typed "Smiht", but it should be "Smith"), please contact us at 866-734-4530 to change it. If you have legally changed your name, please send us a completed Vanguard 529 College Savings Plan Account Information Change Form.If you are changing your name due to a change in your marital status, please enclose a copy of your marriage certificate or divorce decree.Please DO NOT send original documents. Ascensus College Savings and Vanguard are not responsible for returning any documents.A: Yes, the Account Owner can name another member of the original beneficiary's family as the new beneficiary at any time. The new beneficiary must have one of the following relationships to the original beneficiary:
- Son or daughter
- Stepson or stepdaughter
- Brother, sister, stepbrother or stepsister
- Father or mother (or an ancestor of either)
- Stepfather or stepmother
- Son or daughter of a brother or sister (i.e., niece or nephew)
- Brother or sister of the father or mother (i.e., aunt or uncle)
- Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
- Spouse or spouse of any of the above
- First cousin
A: You can change the beneficiary online by logging into your account. You can also complete and mail The Vanguard 529 College Savings Plan Beneficiary Change Form .A: The successor account owner designation may be changed or revoked at any time, either online or by contacting us at 1-866-734-4524. You can also download and mail The Vanguard 529 College Savings Plan Beneficiary Change Form .A: In general, confirmation of your transaction or requested change will be sent on the business day after your transaction is processed. If you elect e-delivery, you will receive an e-mail notifying you that your confirmation has been posted.A: You will have online access to your confirmations for 7 years and to your statements for a minimum of 13 months.A: Yes. Refer to the Program Description for that information, or visit Fund Descriptions on Vanguard.com®.A: Your purchase will be made at the closing unit price of the portfolio on the business day your check deposit is received in good order if it is received before 4 p.m. Eastern time on a regular business day that the New York Stock Exchange is open. If the deposit is received after the NYSE is closed, it will be made at the closing unit price on the following day.A: No, if you don't change your asset allocation, investment allocations in the portfolios will adjust over time as your beneficiaryages. Allocations will shift from more aggressive investments when the beneficiary is younger to more conservative investments as the beneficiary approaches their target enrollment year.A: Yes. Under the federal regulations that govern 529 plans, you are able to change the way your assets are currently invested and can opt into different portfolios twice per calendar year, or upon a change in beneficiary. You may change your allocation of future contributions at any time. If you do nothing, you will stay in the portfolio you originally selected. If you wish to change your investments, you may do so online or you may contact us at 1-866-734-4524.A: You can cancel your Recurring Contribution (Automatic Investment Plan) online by selecting your beneficiary's account and selecting "Manage Recurring Contributions."A: Log into your account and select "Profile & Documents" and then "Bank Information," where you may choose to delete bank information.A: The account you are transferring funds from could be a checking or savings account and it must be held with a U.S. financial institution that is a member of the Automated Clearing House (ACH) network. You cannot use a passbook savings account or any of your Vanguard® accounts for an electronic bank transfer.A: If you request an electronic bank transfer by 4 pm, Eastern time on a NYSE business day, your purchase will receive the current business day's trade date. Your bank account will be debited the following day.A: Recurring Contributions receive the trade date prior to the business day we debit your bank account. When you set up an AIP, you can indicate whether you want money to be taken from your bank account every month or every quarter. As part of the process, you must indicate a debit date. For example, if you select monthly deductions and a debit date of the 8th, your bank account will be debited on the 8th of every month. If you select quarterly and a debit date of the 15th, your bank account will be debited on the 15th of every third month, such as February, May, August, and November, based on your start date. If your debit date falls on a weekend or holiday, money will be taken from your account on the next business day.A: Yes. You may perform a federal tax-free rollover for the same beneficiary once every 12 months.A. Log on to your Vanguard 529 College Savings Plan account and select "Roll over from another 529." Select the other 529 plan from which you are withdrawing funds.Complete and mail the form.If you have already removed money from another 529 plan and it is within 60 days, you may do an indirect rollover. Make sure your check is made payable to "The Vanguard 529 College Savings Plan." and include basis and earnings information shown on a statement from your previous 529 account manager.A: Withdrawals can be done online, by phone, or by submitting a Withdrawal Request Form. Non-qualified withdrawal must be requested by submitting the Withdrawal Request Form which is available for download from the website or it can be mailed to you upon request. Proceeds from qualified withdrawals can be sent to the account owner, to the beneficiary, or to the higher educational institution. Proceeds from non-qualified withdrawals can be sent to the account owner at the address of record or to the beneficiary. A 1099Q will be generated by the Plan in January of the calendar year following a year in which there was a withdrawal from the account. The recipient of the 1099Q will be either the account owner or the beneficiary, depending upon who received the proceeds of the withdrawal. Withdrawals sent to the account owner will be reported under the account owner's social security number. Withdrawals sent to the beneficiary or to an educational institution will be reported under the beneficiary's social security number per IRS guidelines.A: For withdrawals done online, or by phone, if your request is submitted on a NYSE business day prior to 4:00 pm Eastern time, your withdrawal will be processed with that day's trade date. Withdrawals requested after the 4:00 cut off time will receive the next business day's trade date. Proceeds can be sent by check or, if you already have banking instructions established on your account (for security purposes this must be established 15 days prior to your withdrawal request) by Electronic Bank Transfer to your bank account. Proceeds by check will be mailed to the recipient within three business days. For withdrawals done by submitting a withdrawal request form, if your form is received in good order on a business day prior to 4:00 PM ET, it will receive that day's trade date, and a check will be mailed to the appropriate recipient within 3 business days. Allow 10 business days for the check to be received. Allow extra time if the proceeds are being sent directly to the educational institution, as crediting the money to the student's school account may be delayed in periods of heavy volume.A: You can withdraw money at any time, but if the withdrawal includes contributions made within the previous 7 business days, your withdrawal proceeds will be held until the recent contribution has been collected.A: Yes. Repayment of student loans is considered a qualified education expense. Speak with a tax advisor to verify if your situation applies.A: If the beneficiary decides not to go to college, you have three options:
Stay invested. You can leave the money in the account in case the beneficiary decides to attend school later. There is no age limit for using the money.
Change the beneficiary. You can change the beneficiary on your account at any time provided that the substitute beneficiary is an eligible family member of the original beneficiary. For a complete list of eligible family members, refer to the Program Description.
Withdraw the money for other uses. A 10% federal penalty tax on the earnings will apply if you withdraw money from an account for any reason other than to pay for qualified college expenses. Exceptions to this penalty include a withdrawal made because the beneficiary:- Has died or become disabled.
- Received a scholarship, to the extent the withdrawal amount does not exceed the scholarship amount.
- Has enrolled in the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy, or the United States Merchant Marine Academy, to the extent that the amount of the withdrawal does not exceed the costs of advanced education attributable to such attendance.
A: The Plan will generate a 1099Q for any account that had a withdrawal in the calendar year. These forms will be sent and available online by the end of January of the next calendar year.A: You can maintain your account and continue to make contributions no matter where you live in the United States. You should always check the 529 Plan for the state in which you reside or pay taxes to see if there are tax benefits for investing in an in-state 529 plan.
Contact Vanguard's Education Savings Department
Contact Vanguard's Education Savings Department
Call or email
866-734-4530 EducationSavings@vanguard.com Monday through Friday, 8 a.m. to 8 p.m., Eastern Time
U.S. mail
The Vanguard 529 College Savings Plan P.O. Box 55111 Boston, MA 02205-5111
Registered, certified or overnight mail
The Vanguard 529 College Savings Plan 95 Wells Avenue, Suite 155 Newton, MA 02459