A 529 plan is a tax-advantaged savings plan intended to encourage saving for education costs.
Using your 529 plan at FSU:
If you have a 529 plan and would like to use it to pay qualified education costs at FSU, then you will need to work with your plan administrator to arrange the withdrawal payment(s).
Your plan administrator will likely offer a few withdrawal options, including sending payment to you, or to the plan beneficiary, or to the school. Talk with a tax professional about which option makes the most sense for you. Your plan administrator might request an invoice from FSU.
Your official FSU invoice is available on-demand through the “generate invoice” option at my.fsu.edu. Step-by-step instructions to generate your official invoice are available online here: https://studentbusiness.fsu.edu/self-service-invoice
If you choose to have your payment sent directly to FSU, then please be sure that your plan administrator includes:
- Student’s full name
- Student’s EMPLID (which is also the “Customer ID” on FSU’s official invoice)
529 plan payments should be made payable to FSU and mailed to the payment address listed on the invoice, which is:
Office of Student Finance
A1500 University Center
Tallahassee, FL 32306-2394
FAQs:
What are Qualified Education Expenses?
Please see IRS Publication 970 for details. We are not qualified to offer tax advice, so more specific questions are more appropriately addressed by a tax professional.
https://www.irs.gov/pub/irs-pdf/p970.pdf
IRS Publication 970 references cost of attendance. FSU’s official cost of attendance information, which is used in financial aid calculations, is available by term/academic year on the Office of Financial Aid’s web page, here:
https://financialaid.fsu.edu/cost
How do I request timely payment if I am waiting on the final bill?
We recommend that you arrange payment through your plan administrator as early as possible, so your payment reaches us before the state-mandated fee payment deadline, which is the Friday of the second week of classes. If you need additional time, please contact us before the fee payment deadline.
If you are waiting for financial aid payments to apply, then complete the Office of Financial Aid’s checklists to make sure your financial aid is ready to pay as early as possible. Most types of financial aid can pay during FSU’s advertised early disbursement (see academic calendar), which is usually up to about a week before classes start, if this checklist is complete. Awards affected by schedule changes during drop/add will adjust during the fifth day of classes.
Additionally, if your schedule is set, then you should be able to anticipate Financial Aid award payment amounts based on the my.fsu.edu award summary page. The only awards expected to vary from the amount showing as awarded are: Florida Bright Futures, which pays a per-credit rate, Federal Pell Grants that are pro-rated based on a student’s full-time, part-time, or three-quarters time enrollment, and federal student loans, which deduct a one-time loan fee from the accepted loan amount.
More information:
- US Securities and Exchange Commission: An Introduction to 529 Plans
https://www.sec.gov/reportspubs/investor-publications/investorpubsintro529htm.html
- IRS Publication 970.
