The 60-day rollover rules essentially keep people from taking money out of their retirement accounts tax-free. e. For example, Jake is a parent in Florida that has a 529 plan for his child. Below are all the forms you should need to create and manage your NC 529 Account. Normally, any withdrawals from a 401 (k), IRA or another retirement plan have to be approved by the plan sponsor, and they carry a hefty 10% penalty. From My Accounts, choose the appropriate account to act on. Fee Score. CollegeAmerica® 529 Plans. citizen or a resident alien. That means that you cannot use more than $9,800 per year from your 529 plan to be “qualified”. A qualified distribution is a withdrawal from a qualified retirement plan, such as a 401 (k), that is tax- and penalty-free. For example, if you lose your job but expect to be working again soon, you can take a withdrawal and then redeposit up to $14,000 in one year without incurring a. As long as you redeposit the money into the same retirement account or another. Say your child receives a full or partial scholarship or attends a military academy, you can withdraw certain amounts from your 529 account that will not be used for qualified higher. The 1099-Q reports the total of all withdrawals you make during the year; however, some of this amount may be. 25% tax. As an account owner, you'll pick investments, assign a beneficiary, and determine how the money is used. As with any investment, a 529 plan will experience market changes that. 529 Deposits Direct 529 Plan Re-contribution. January 2016. Multiply the total distributed earnings shown in box 2 of Form 1099-Q by a fraction. But later, under the new rule, $10,000 from the grandparents’ 529 fund can be used to help repay the debt. You can use it to help pay for tuition, apprenticeship programs, room and board, fees, books, supplies, equipment, computer hardware and. You should take 529 plan distributions during the same calendar year that you pay for the qualified expenses. Below are all the forms you should need to create and manage your NC 529 Account. Pros. Planning. -529 distribution covering the qualified expenses is electronically transferred to the student’s checking account. Withdrawals made for qualified education expenses for the school year are federal tax-free. As the account owner of the Bright Start 529 account you control the account and determine when and where funds are paid. It’s only if you don’t deposit. I have put $747/year in the specific account for each year 2017-2020. Indirect rollover. Funds may be used at virtually any college or university in the United States, and many abroad. 529 plans offer tax-free withdrawals when the funds are used to pay for qualified education expenses. Withdrawals from a 529 plan account; Take advantage of professional money management experience from Fidelity. Or you can mail the Plan a completed Withdrawal. WASHINGTON — The Internal Revenue Service today released Notice 2020-50 PDF to help retirement plan participants affected by the COVID-19 coronavirus take advantage of the CARES Act provisions providing enhanced access to plan distributions and plan loans. Out of the $4,000 credit, I can keep $2,000 in books and iPad that I bought her for college, which I didn’t withdraw from the 529 account yet. For example, withdrawals for K‑12 expenses may not be exempt from state tax in certain states. When. States take different approaches to the income tax treatment of withdrawals. Re: 529 Accidental Withdrawl query. That could mean giving the government $1,000, or 10% of a. Retirement Planning Calculator. The quickest and easiest way is online. From My Accounts, choose the appropriate account to act on. If you end up taking a non-qualified withdrawal, you’ll incur. Identify those authorized to act upon Vanguard 529 College Savings Plan accounts on behalf of an organization. minimum contribution. Annual Roth IRA contribution limits apply to rollovers (in 2023, the limit is $6,500, which means it would take six years to convert $35,000 from a 529 plan to a Roth IRA) Conversions can only be made to a beneficiary’s Roth IRA; a parent saving with a 529. Now this year, Accidentally withdrew $747. Non-qualified withdrawals will incur a 10 percent penalty on the earnings portion of that non-qualified withdrawal and should be reported as income by the 1099-Q. Be mindful of double dipping. Contributions. There are some guidelines including: 1) The refunded amount must re-deposited within 60 days of the issuance of the refund; and 2) it must be deposited into a qualified 529 account. In Washington state, for example, the 529 withdrawal penalty for non-qualified distributions includes earnings on 529 funds being taxable at the federal and state level, plus the 10% federal. A 10% federal penalty tax and. Yes. . Annual limits. 1. Most 529 plans include an administrative or annual fee, which tends to be around 0. The 60-Day Grace Period for Withdrawals From Retirement Accounts 2. The majority of plans offer two options – you can make an ACH deposit to your bank account, or have a check printed and mailed. Contributions made to the 529 plan in the last five years before distributions start—including the associated earnings—are ineligible for a tax-free rollover. Roth 401(k)/403(b) Analyzer. Please note, for the Fillable PDF option, no typed information will be saved once you exit. You can also use your 529 plan to pay for K-12 tuition up to $10,000 per year per beneficiary. SPONSOR CENTER. My withdrawal will be sent directly to the school. Answer: B (in most cases). Amount rolled over to another (or back to the same) retirement account – Enter redeposit amount. California even imposes an additional 2. 313, Qualified Tuition Programs (QTPs) A qualified tuition program (QTP), also referred to as a section 529 plan, is a program established and maintained by a state, or an agency or instrumentality of a state, that allows a contributor either to prepay a beneficiary's qualified higher education expenses at an eligible educational. After putting money in a 529 plan, you can withdraw money to pay for college. Say your child receives a full or partial scholarship or attends a military academy, you can withdraw certain amounts from your 529 account that will not be used for qualified higher. Access our most popular forms below, or select All Forms to see a complete list. The cost of certain apprenticeship program expenses is another QEE. There is also an income cap which can limit. If you really think there is no chance you or anyone else in your family will ever use the funds in the 529 plan for education-related purposes, then go ahead and take a nonqualified distribution. Bank Information Form PDF. If you're able to redeposit the money or roll it into a new account during the 60-day safety window, you'll need to replace. ”. It's also possible to contribute a lump sum of up to $85,000 to one or more 529 college savings plan in a single year (or $170,000 for couples) without being subject to the gift tax. Say your child receives a full or partial scholarship or attends a military academy, you can withdraw certain amounts from your 529 account that will not be used for qualified higher. Account Transfer Form (Non-Retirement) PDF. But, if the money is not used for qualified education expenses, federal income taxes may be due on any earnings withdrawn. *Annual percentage yields (APYs) are accurate as of 11/15/2023. Yes, funds can be redeposited into Virginia529 accounts provided these guidelines are followed: the funds you wish to redeposit must have been refunded to you by your beneficiary’s eligible educational institution. For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). Before investing in any state's 529 plan, investors should consult a tax advisor. Contributions made to the 529 plan in the last five years before distributions start—including the associated earnings—are ineligible for a tax-free rollover. 2 If the funds aren’t used for qualified higher education. I was not paying close enough…For example, Michigan residents who contribute to a Michigan 529 plan owned by another person may deduct up to $5,000 ($10,000 if married) of 529 plan contributions from state taxable income. ES_NYA_WD_030222 — Page 3 of 8 Reason for withdrawal (continued) G. Tomorrow’s Scholar Withdrawal Request Form. Skip to the main content. Ohio's 529 plan provides a tax-advantaged way to save for the future college expenses for yourself or a loved one. A 529 plan is an investment account that offers tax benefits when used to pay for qualified education expenses for a designated beneficiary. IRS is aware of concerns expressed by 529 plan administrators regarding the administrative burdens that would arise if a recontribution of a refunded QHEE is treated in the same manner as a rollover under Notice 2001-81 requiring a breakdown of the earnings portion of the recontribution. Select the appropriate account, click Next. A 529 account is a state-sponsored way to help you save for your kid's college. 529 Withdrawals Penalties. The Protecting Americans from Tax Hikes (PATH) Act allows you to recontribute those funds to your Ohio Direct 529 account. Plus, it offers special tax benefits to MO taxpayers who become education savers with MOST. 5 million accounts, Virginia529 is the largest 529 plan available. S. 529 plan account owners can. Many parents pay tuition with cash or a credit card, and then reimburse themselves with the student’s 529 plan. Rollovers of 529 plan assets into ABLE plan accounts will not be considered taxable events for purposes of New York State taxes. The UNIQUE College Investing Plan, U. If you withdraw money from your 529 plan for a non-qualified purpose, the withdrawal will be subject to tax, including the additional 10% federal tax. IR-2020-172, July 29, 2020 — The Internal Revenue Service provided a reminder today that the Coronavirus Aid, Relief, and Economic Security (CARES) Act can help eligible taxpayers in need by providing favorable tax treatment for withdrawals from retirement plans and IRAs and allowing certain retirement plans to offer expanded loan options. 3. To access, please call 1-866-529-8582 and follow the prompts. When making a withdrawal from your 529 plan, consider the following: • The withdrawal can be made before you pay for the qualified expenses. Now this year, Accidentally withdrew $747. 5. Qualified Tuition Plans (QTP 529 Plans) Distributions. Postsecondary expenses. Designating the distributee. This. Calculate Your Qualified Education Expenses. Your 529 savings plan withdrawals will be free from federal tax as long as you use them for qualified education expenses like room and board, tuition, required books and supplies for higher education. 3: The IRS Knows about Withdrawals. With the new form, the amount of a student’s “total income”, which includes untaxed income, will come directly. If you don't see the form you want, view all forms here. Step 1: Calculate how much you are spending on qualified education expenses. • For withdrawals made payable to the account owner, the 1099-Q is sent to the account owner. As mentioned above, if you take a distribution from a 529 plan and use some or all of it to cover non-qualified expenses, you will owe not just federal income tax but, in most cases, an. IR-2020-124, June 19, 2020. If the beneficiary gets a scholarship, uses their GI Bill benefits, enlists in the military, or enrolls in a service academy, they can withdraw funds from their 529 without. An individual has up to three years to pay the taxes on the early withdrawal or to redeposit the money back into their retirement account (versus the standard repayment requirement of 60 days). Taking money out of your 529 plan account won't be difficult. They can go directly to you. The first would allow students who get a refund of higher ed expenses (if they withdraw from college) to redeposit those funds back in a 529 within 60 days without penalty. ↩. Log on to your account. 4. A 10% penalty may not sound like much, but combined with taxes, it can significantly cut into your net withdrawal amount. If you contribute money to a qualified tuition program, such as a 529 plan or a Coverdell ESA, you will likely receive an IRS Form 1099-Q in each year you make withdrawals to pay school expenses of the beneficiary. 5. Taking too much money. 410286. Contributions may trigger gift tax consequences if you earmark more. Health insurance – If you become unemployed and you need to purchase health insurance, you can make a penalty-free early withdrawal. Contributions to the Fifth Third 529 Savings Account and CD Options require two business days to complete the transaction. e. . Also, if you access any gains, you are subject to potential fees and taxes. An annual withdrawal limit of $10,000 is applied to 529 plans for K-12 tuition expenses. The redeposit cannot exceed the amount of the original payout. 0 1,795 Reply. The system will then navigate you through the process. Here’s why: 1. Simply follow these steps. Our portal allows withdrawals payable directly to your college/university or to the Account Owner or Beneficiary with proceeds sent by check or to your bank information on file. The 10% additional tax also does not apply as a result of withdrawals made due to the death or disability of the designated beneficiary. If the beneficiary dies or becomes disabled. Because of the way financial aid is determined, it’s generally best if the beneficiary’s parents own the account. Open a 529 account with Merrill today. The Path2College 529 Plan is offered by the State of Georgia, with TIAA-CREF Tuition Financing, Inc. Once you’ve decided on where to send your 529 funds, the next step is to select the type of payment. Here are six mistakes you'll want to avoid: 1. It is probably too late to fix this now. Open a 529: 529 Enrollment Application. ; Contribution Summary — as a courtesy Bright Start provides an annual Contribution Summary. If the beneficiary attends an eligible educational institution at least half-time, you can still use the 529 account to pay for certain room and board expenses. How our 529 works. Exceptions to 529 withdrawal penalties. Our Family of ETFs. Request a Qualified or Non-Qualified Withdrawal from your NC 529 Account. In rare circumstances, there may be other instances in which a non-qualified withdrawal is permitted. Step 4: Complete a withdrawal request online with the plan administrator. See What We Offer . With over $60 billion in assets under management and 2. 2001 memo confirmed that they did not reduce the qualified and related expenses for the purpose of. August 16, 2021 2:53 PM. 3. Qualified Expenses. • Non-qualified withdrawals will incur a 10 percent penalty on the earnings portion of that non-qualified withdrawal and should be reported as income by the 1099-Q recipient. Non-qualified withdrawals may also be subject to an additional 2. For example, an activity fee that all students are required to pay to fund all on-campus student organizations and activities. As explained earlier, the earnings included in 529 account withdrawals that are not used to cover the account beneficiary’s qualified education expenses must be included in gross income. Learn about the tax consequences if 529 funds are used for an unqualified expense, what the exceptions to the penalty are, and how to redeposit 529. Be aware of the basic 529 withdrawal penalties when you. To save a completed form, you need the full version of Adobe Acrobat ®, which must be purchased. The processing time for your withdrawal depends on the method you use to withdraw your money. Your withdrawal will take 2–4 business days from the time of your withdrawal request until the money is available in the account you are transferring to. A 529 plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. 529 plans will allow money to be taken out for the exact amount of the scholarship or grant that has been awarded. A distribution from a pre-tax IRA account is typically subject to a 10% early withdrawal penalty if taken before 59 ½. This includes public and private colleges and universities, apprenticeships, community colleges, graduate schools and professional schools. m. 2228 from 7:30 AM to 6:00 PM, Central, Monday through Friday). Read Viewpoints on Fidelity. Grant an agent the authority to act on your Vanguard 529 College Savings Plan accounts. If you convert a traditional IRA or 401 (k) to a Roth IRA, you'll need to hold the Roth IRA for at least five years before making withdrawals to avoid the 10% early withdrawal penalty. Simply follow these steps. 1. Due to 2018 tax reforms, parents can use up to $10,000 saved in 529 accounts to pay tuition for children attending kindergarten through 12 th grade. Report any taxable 529 plan withdrawals. And yes, you can just request a withdrawal from the 529 back to your bank account. Withdrawal from your NC 529 Plan Account, you may request that those funds be redeposited into the same Account to avoid certain tax consequences and penalties, as long as you meet the IRS requirements. As long as you redeposit the money into the same retirement account or another. This benefit applies to federal taxes. Here is. 2 For the tax year 2023, there’s no federal gift tax on contributions made up to $17,000 per year for a single filer, or $34,000 for a married couple. a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Take the Money – and the Penalties. Yes. You (the grandparent). 5 years old, this is an early withdrawal. You can estimate the approximate cost by logging in to myCalPERS to get an estimate. 2. Educational institutions can offer pre-paid tuition programs, but not 529. If great than $10,000, you will need to cash the refund check, and then send OTTA a personal check for the re-contribution. For a Roth 401 (k) or Roth IRA, you can withdraw your contributions at any time. ↩ 2 Source: ISS Market Intelligence 529 College Savings Fee Analysis 3Q 2023. CARES act RMD withdrawal and redeposit confusion. It’s a myth that you’ll lose your 529 plan if the child wins a scholarship. How to Pay. Or you can mail us a a completed Withdrawal Request Form. How a 529 Plan Works. The Pension Protection Act of 2006 indefinitely extended the federal tax-free qualified withdrawals on 529 college savings plan savings. In rare circumstances, there may be other instances in which a non-qualified withdrawal is permitted. Tax professionals and other experts agree that 529 plan distributions should match qualified. -The student writes a check to the school to cover all billed expenses. College Savings Calculator. “The Secure Act,” Mr. NY 529 Direct Plan account owners benefit from tax-deferred earnings and tax-free withdrawals. Mistake #2: Relying on Form 1098-T. Report Inappropriate Content. An account owner may initiate a tax-free distribution on behalf of the beneficiary for “qualified” college or graduate school expenses (in most states). This is not an official IRS rule, but it is implied by published IRS guidance. Verify the linked cash security is populated in the cash security name field. W-9 Form - advisory. The first would allow students who get a refund of higher ed expenses (if they withdraw from college) to redeposit those funds back in a 529 within 60 days without penalty. Check with your state for specific tax benefits. To process a request online: Log on to your account. 50%. You enter data derived from the 1099-Q in your tax return. Fifth Third establishes the rates as well as the effective dates and times. ET Monday-Friday at 1-800-AFFORD-IT (1-800-233-6734). 1099-Q tax forms will be mailed at the end of January and will also be posted on the Bright Start account portal at that time. Those who received refunds after May 15 th have 60 days from the date of the refund. Again, your earnings will not incur federal taxes as long as your payments go towards tuition. Your adjusted expenses are $8,000—which means you don’t have to report any education program distributions on your tax return. You may be eligible to put the money back into the same 529 plan If you are refunded money by the school, for example if your child drops a class or withdraws,. 529 plans are tax-advantaged college savings accounts sponsored by each state. Before sending a completed form to American Funds, make sure it has all the. Forms labeled as “fillable” can be filled out online. A 529 plan is an investment account that offers tax benefits when used to pay for qualified education expenses for a designated beneficiary. Note:The American Opportunity Credit is worth up to $2,500 for each of the first four years of college and is based on 100% of the first $2,000 spent on qualified education expenses (tuition and fees. A digital copy can be accessed through your online account. Managed for conservative growth and income investing. 529 plans are state-run, tax-advantaged accounts that allow you to save for a child’s college education. The cost of certain apprenticeship program. Contact your 529 plan provider to find out how to proceed. -Funds from a non-529 source are transferred to the student’s checking account to cover non-qualified expenses. ). Bookmark Icon. m. Earn an additional $25 in bonus rewards when you link your first Ohio's 529 Plan account to your new Upromise. Consumer Reports explains how to withdraw money from a 529 college savings plan. com. Withdraw Funds Only for Qualified Expenses. Use our ScholarShare 529 resources to find options that fit your savings goals and support your child’s path to a college education. But, technically, the money must be put back within 60 days of the "refund". Manage your Ohio 529 Plan account at CollegeAdvantage. • For withdrawals made payable to the account owner, the 1099-Q is sent to the account owner. Qualified education expenses include tuition, fees, books, computers and related technology and some room and board costs for students attending an eligible college or university. -The student writes a check to the school to cover all billed expenses. Account owners may redeposit funds that were previously withdrawn from Prepaid529 accounts. The Benefits Of 529 Plans For Retirees. The borrower can’t bypass the $10,000 limit by having two or more 529 plans. 529 contributions are tax deductible on the state level in some states. The maximum annual Roth IRA contribution limits still apply—while the 2024 numbers aren’t out yet. But you will pay a 10% penalty plus income tax on any of the earnings your fund had over the years. For Schwab Bank, Schwab Global Account, 529 Plan and other forms and applications not listed here, view. Some 529 plans allow account owners to make electronic payments directly to the college. Withdrawal for a Qualifed Education Loan Repayment to the Account Owner. Invest529, Virginia's direct-sold college savings plan is available to residents of any state, and offers low fees, diverse investment options and tax benefits for residents. Using a 529 plan to cover college costs can be a great way to minimize the need for student loans. If the beneficiary or account owner of a 529 plan receives a refund of qualified higher education expensesfrom the college or university that were paid for with a 529 plan distribution, the refund can be recontributed to the 529 plan within 60 days of the date of the refund without having to pay any taxes and penalties. Use this process to open a Vanguard® 529 College Savings Plan account. Look into penalty-free non-qualified withdrawal options. The federal tax benefits associated with a 529 college savings plan will eventually disappear. Cyber1001 said "Otherwise, I might have to pay tax for the capital gain of the money withdrawn from 529 plan. For withdrawals made payable to the account owner, the 1099-Q is sent to the account owner. Contributions. If you spend. Read it carefully before you invest or send money. 14% to 0. Most Popular Forms All Forms. And—before you request that withdrawal—here are some tips to help you avoid some. Although the funds generally aren’t available to cover a health insurance premium, most other medical. **. K-12 expenses. S. ABLEAmerica® Plans. You may be able to avoid a penalty if your withdrawal is for: First-time home purchase. 84-119 Month CD (7 to 10 years) 1. Find forms to customize your Merrill Edge accounts. Under 529 plan withdrawal rules, the following are considered. Simply follow these steps. Resize. , December 31—to maximize any state tax breaks associated with those contributions. As long as your qualified education expenses are greater than or equal to the amount withdrawn from the 529, you don't have to report anything about the withdrawal on your tax return. Helpful tips: Taking money out of your 529 plan account won't be difficult. Part 1: Direct Deposit To deposit all or a portion of your refund into an Oregon College Savings Plan or MFS 529 Savings Plan account, complete Part 1. Vanguard 529 Power of Attorney. 1. But in. Qualified withdrawals now include expenses related to apprenticeship programs and certain student loan payments. 529 withdrawals are tax-free to the extent your child (or other account beneficiary) incurs qualified education expenses (QHEE) during the year. Use a 529 to pay for elementary and secondary school tuition. I have put $747/year in the specific account for each year 2017-2020. You would complete the Model Letter in the appendix to Revenue Procedure 2016-47 PDF or a substantially similar letter and present it to the financial institution receiving the late rollover contribution. Made the $747 contribution I originally planned. . States can set their own limit, however. Transfer on Death Registration Request Form PDF. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Description. Rollovers are. If you’re using 529 plan funds to pay student loan debt, there is a lifetime withdrawal limit of $10,000. On the "Overview" page, under Investments, select Make a Withdrawal. 529 plan distributions are allocated between the earnings and contribution (basis) portions. Planning LIFE MOMENTS. You always have the option to transfer the 529 plan itself to the beneficiary (i. 529 Withdrawals. A 529 college savings plan is one of the best ways to squirrel away money due to its impressive list of available uses and tax deductions. • Use this form to request a full or partial Qualified Withdrawal, Non-Qualified Withdrawal or Indirect Rollover from your Oklahoma 529 Account. It’s only if you don’t deposit. Requirements • To make this choice, you must have an open Oregon College Savings Plan or MFS 529 Savings Plan account. When. e if you invested $100 and the account now had $125, a $100. An account owner may initiate a tax-free distribution on behalf of the beneficiary for “qualified” college or graduate school expenses (in most states). If the beneficiary earns a full scholarship, the government waives the penalty. The earnings portion of a nonqualified withdrawal is subject to federal income tax and—for Utah residents—Utah state income tax. 53%. When you pay qualified education expenses from a 529 account, your withdrawals are tax- and penalty-free. This scenario may appear that. Since money in a 529 plan grows tax-free, she says, "that argues for leaving the money in the account as long as possible. Virginia529 has posted the Form 1099-Q to online accounts and physical. ↩. As the account. Ashbridge Strategy. The first restriction on a standard rollover is you only have 60 days after the distribution to redeposit funds into an IRA account, hence the moniker “60-day rollover. Just log on to your account and request a withdrawal. You never pay tax on the basis . Most 529 plans let the account owners decide how they want their withdrawals to be paid out. Any redeposit beyond that time frame counts as an unqualified withdrawal and triggers potential tax consequences. Consider a 529 withdrawal for a short-term emergency. Alternative Lending. These include the death or disability of the beneficiary and the decision by the beneficiary to attend a U. You can give it to someone else. Consider a 529 withdrawal for a short-term emergency. Please note that refunds from K-12 schools are NOT eligible for recontribution. Gifting larger amounts to a 529 account is a unique opportunity to support your loved one’s college education and contribute to your personal investments. IRA/401k withdrawals & redeposits. Account Information Most states set a December 31 deadline, but Georgia, Mississippi, Oklahoma, Oregon, South Carolina and Wisconsin give you until April 15, 2019 (and Iowa gives you until May 1, 2019) to make tax. Step 3: Decide which 529 plan. College savings plans – These work a lot like a Roth 401 (k. These include items such as tuition and fees, room and board, textbooks and lab. Fair enough. Once the Roth IRA account is open, the money must be transferred directly from the 529 plan to the IRA. Learn more about 529 plans with answers to frequently asked questions about tax-advantaged savings plans designed to save for college. We suggest you keep receipts and records to substantiate your qualified expenses in case of an audit by the IRS. Grandparents can also choose to make a one-time deposit of up to $85,000 from each grandparent, per child, total, without running into gift tax penalties. To view and print forms, you can use Adobe ® Reader ®, which is free. 529 plans are flexible, tax-advantaged accounts designed for college savings. Using 529 Plan Withdrawals for Private Education. 529 plans offer tax-free withdrawals when the funds are used to pay for qualified education expenses. Complete and mail the Withdrawal Request Form. How Our 529 Works. While 529 withdrawal rules are fixed, there are ways to make non-qualified withdrawals without getting hit with that 10% penalty; these include: The student beneficiary receives a. The amount of the additional tax you have to pay increases from 10% to 25% if you. Established in 1999, MOST helps Missouri families save for college, technical schools, career training and more. 6 tips for making qualified withdrawals from your 529. Here are the steps to follow: Direct 529 Plan Re-contribution You must mail in a check as the re-contribution. Annual.