Ready to take a distribution?

You will have the option to:

• Send electronic payments directly to colleges, universities, and other eligible postsecondary schools.*
• Request a check to be sent directly to colleges, universities, and other eligible postsecondary schools.*
• Request a check made payable to yourself to be sent to your address on record.
• Send funds electronically to your existing bank account on file.
• Request a check made payable to the beneficiary and sent to the beneficiary's address on record.
• Send funds electronically to the beneficiary's existing bank account on file.

Any distribution request of $100,000 or more requires the Distribution Request Form and will also require a Medallion Signature Guarantee.

It is important to note that tax reporting is dependent upon the payee of the distribution. If the distribution is made payable to the account owner, the tax reporting will be issued under the account owner's Social Security number and mailed to the account owner's address on file. If the distribution is payable to the beneficiary or an eligible postsecondary school, the distribution will be reported under the beneficiary's Social Security number and the tax form will be mailed to the beneficiary's address on file.

*If an electronic payment or a check is sent directly to the school, the beneficiary will be the taxable party for the distribution and will receive a 1099-Q for the current tax year. Please note distribution checks for K-12 schools should be made payable to the account owner or the beneficiary.

We do our best to give you access to your distribution as quickly as possible.

Distribution requests received in good order are processed the day they are received if they are received prior to 4pm ET on a business day. If the request is received after 4pm ET or on a holiday, weekend, or other non-business day, the request will be processed the following business day.

The quickest way to distribute funds to a school is to request an online electronic payment directly to a postsecondary school. This request typically takes two business days.

Alternatively, you can request an online electronic payment to a bank account on file for you or your beneficiary. This option typically takes three business days.

Finally, you can request a check payable to yourself, your beneficiary, or a postsecondary school. Checks typically take 7 to 10 business days to be received in the mail, after the distribution request has been processed by the Investment Plan.

Qualified education expenses are defined in the Internal Revenue Code. For a complete list, view IRS Publication 970.

For the distributions to be federally tax-free, you have to use the funds for one of the qualified expenses below:

• Colleges, Universities, Graduate Schools, and Technical/Vocational Schools:
  Tuition and fees; room and board; books, supplies, and equipment required for enrollment or attendance; computer and technology needs; and certain expenses for special needs students may be covered. To be a qualified expense, the institution must be considered an eligible education institution, which is defined in the IRS Code and further explained in IRS Publication 970.
• K-12 Tuition for Public, Private, or Religious Schools^*:
  Tuition expenses of up to $10,000 per year, per beneficiary.
• Apprenticeship Programs:
  Books, fees, equipment, and other supplies.
• Education Loan Repayment:
  The principal or interest on a qualified education loan for the beneficiary. There is a $10,000 lifetime maximum per individual.

^*While distributions from 529 plans for elementary or secondary education tuition expenses are federally tax-free, state tax treatment will vary and could include state income taxes assessed, the recapture of taxes for previously subtracted amounts from state taxable income, and/or state-level penalties. You should consult with a tax professional for additional information.

No, you are responsible for satisfying the IRS requirements for proof of a qualified distribution, which include retaining any paperwork and receipts necessary to verify the type of distribution you receive.

Each January, the Maryland College Investment Plan issues Form 1099-Q for any distributions taken during the previous calendar year. This form is mailed to the account owner if the distributed assets were mailed or electronically sent to the account owner. If the assets were sent to the beneficiary or the eligible postsecondary school, then the 1099-Q is mailed to the beneficiary's address on file. The account owner can access any account owner 1099-Qs online by logging in to their account online and clicking Profile & Documents from their dashboard.