What to know about withdrawals
No federal tax on qualified withdrawals
If you withdraw 529 money for qualified higher education expenses, you pay zero federal income taxes on your withdrawal.
Tax hit for non-qualified withdrawals
If withdrawing for non-qualified expenses, earnings are subject to federal income tax and a 10% penalty.
Tax forms you'll receive
After taking a withdrawal from your 529, Fidelity will send IRS form 1099-Q to you and the IRS.
Ways to make payments or withdraw
Transfer between Fidelity accounts
Move money from your 529 to another Fidelity account. Typically completes the next day.
Electronic funds transfer (EFT)
Send funds electronically to a non-Fidelity account. Completes in 1- 3 business days.
Bill Pay
Receive and pay eBills (electronic bills) from participating billers. A physical check is typically mailed to the biller.
Bank wire
Funds are typically available next day if the wire's done before 4 p.m. ET. May involve fees from your bank.
Transfer 529 money to a Roth IRA*
Under certain conditions you may be eligible to transfer assets from your 529 to a Roth IRA. For more information see details.
Transfer between Fidelity accounts
Quickly send money from your 529 to another Fidelity account with our online transfer tool. Fidelity-to-Fidelity transfers typically complete on the next day.
Electronic funds transfer (EFT)
An electronic funds transfer (EFT) is a feature that links a bank account to a Fidelity account and allows clients to move money as needed through the Automated Clearing House (ACH) network.
To set up EFT payments to the beneficiary
To send money via EFT to the beneficiary, you must first complete the 529 Standing Payment Instructions online form. Once your instructions are set up, you can send payments electronically on Fidelity.com and in the Fidelity Mobile App.
To send an EFT to a non-Fidelity institution
To electronically send money to an outside institution, you can link your accounts online
Bill Pay
Bill Pay is our free, online service that lets you easily make payments and manage your bills, using your Cash Management Account or Fidelity brokerage account. Typically a paper check will be mailed. Please allow up to 10 mailing days for your payment to arrive.
Enroll your 529 account in BillPay to directly pay a school.
Bank wire
A wire transfer is an electronic payment used to transfer funds between financial institutions. It's the fastest way to securely transfer large sums to yourself, other people, or a business. Bank wires are reviewed and verified by employees at both the sending and receiving firms before they’re processed to ensure the sender has the money to complete the transfer, and that the receiving account is available to accept the money.
To wire from Fidelity
To send a wire transfer, you'll need the routing and account numbers of the bank or account you want to transfer money to. You may also be asked to provide the recipient's name, street address, and email address or phone number.
Complete the Bank Wire Authorization form (PDF) to set up bank wire instructions for your 529 account.
After bank wire instructions are established, send a bank wire to yourself.
To send a bank wire to someone else, please contact Fidelity.
Transfer 529 money to a Roth IRA*
Under certain conditions you may be eligible to transfer assets from your 529 to a Roth IRA established for the beneficiary of the 529 account.
To transfer from a Fidelity-managed 529 to a Fidelity Roth IRA
Transfers from a 529 to a Fidelity Roth IRA will be credited to your core account and treated as a contribution.
Complete the withdrawal form (PDF)
To transfer from a Fidelity-managed 529 to an external Roth IRA
If transferring to an external Roth IRA, a check will be made payable and mailed to the payee listed on the withdrawal form.
Complete the withdrawal form (PDF)
To transfer from an external 529 to a Fidelity Roth IRA
To request a transfer to a Fidelity Roth IRA from a 529 not managed by Fidelity, please contact the 529 provider. The check will be made payable to Fidelity Investments and include the Roth IRA account number (the Roth IRA should be established before the transfer).
*Beginning January 2024, the Secure 2.0 Act of 2022 (the "Act") provides that you may transfer assets from your 529 account to a Roth IRA established for the Designated Beneficiary of a 529 account under the following conditions: (i) the 529 account must be maintained for the Designated Beneficiary for at least 15 years, (ii) the transfer amount must come from contributions made to the 529 account at least five years prior to the 529-to-Roth IRA transfer date, (iii) the Roth IRA must be established in the name of the Designated Beneficiary of the 529 account, (iv) the amount transferred to a Roth IRA is limited to the annual Roth IRA contribution limit, and (v) the aggregate amount transferred from a 529 account to a Roth IRA may not exceed $35,000 per individual. It is your responsibility to maintain adequate records and documentation on your accounts to ensure you comply with the 529-to-Roth IRA transfer requirements set forth in the Internal Revenue Code. The Internal Revenue Service ("IRS") has not issued guidance on the 529-to-Roth IRA transfer provision in the Act but is anticipated to do so in the future. Based on forthcoming guidance, it may be necessary to change or modify some 529-to-Roth IRA transfer requirements. Please consult a financial or tax professional regarding your specific circumstances before making any investment decision.
What to know about contributions
Quicker with Fidelity transfers
Money contributed through a transfer from another Fidelity account is typically available the same day.
Outside banks take longer
When contributing from an outside bank, funds are typically available for withdrawal within 2-6 business days.
Invested per your instructions
Contributions to your 529 will be invested according to your current investment selections by default.
Ways to contribute
Transfer between Fidelity accounts
Contribute money from another Fidelity account. Typically completes on the same day.
Electronic funds transfer (EFT)
Electronically contribute funds from a non-Fidelity account. Completes in 1-3 business days.
Bank wire
Funds are typically available next day if the wire's done before 4 p.m. ET. May involve fees from your bank.
Recurring transfers
Set recurring, electronic contributions from a linked account.
Mobile check deposit
Deposit checks in seconds with the Fidelity Investments app.
Gifting
Family and friends can gift money online to your 529 account.
Transfer between Fidelity accounts
Quickly contribute money from another Fidelity account with our online transfer tool. Fidelity-to-Fidelity transfers typically complete on the same day.
Electronic funds transfer (EFT)
An electronic funds transfer (EFT) is a feature that links a bank account to a Fidelity account and allows clients to move money as needed through the Automated Clearing House (ACH) network.
To contribute from a non-Fidelity institution
To electronically send money to an outside institution, you can link your accounts online, and, oftentimes, can start using it on the same day.
Bank wire
A wire transfer is an electronic payment used to transfer funds between financial institutions. It's the fastest way to securely transfer large sums to yourself, other people, or a business. Bank wires are reviewed and verified by employees at both the sending and receiving firms before they’re processed to ensure the sender has the money to complete the transfer, and that the receiving account is available to accept the money.
To wire to Fidelity from a US bank
You can find Fidelity's incoming bank wire instructions at Information Needed to Wire to Your Fidelity Account.
To wire to Fidelity from a foreign bank
If you are receiving a wire in U.S. dollars from a foreign bank, you can find Fidelity's incoming bank wire instructions at Information Needed to Wire to Your Fidelity Account.
Complete the Bank Wire Authorization form (PDF) to set up bank wire instructions for your 529 account.
After bank wire instructions are established, send a bank wire to yourself.
To send a bank wire to someone else, please contact Fidelity.
Recurring transfers
Automatically contribute money regularly from your bank or other Fidelity account to help you grow a 529 college savings plan.
Mobile check deposit
The safe way to deposit checks in seconds with the Fidelity Investments app—no lines, no waiting.
Gifting
Your savings could get a boost when friends and family give gifts to your 529 account. We’ll help you quickly create a gifting dashboard you can invite them to visit. As the account owner, only you can access your dashboard, so your account information is kept private.
Additional resources
How to spend from a 529 college plan
The right way reduces taxes, avoids penalties, and won't jeopardize financial aid.
Learn how to spend from a 529 college plan
The ABCs of 529 savings plans
Learn ways to explore investment options and potential tax advantages.
Learn more about The ABCs of 529 savings plans
How unused 529 assets can help with retirement planning
You can now transfer some 529 amounts to a Roth IRA.
Learn more about 529 and retirement planning