Qualified Withdrawals. The Wealthfront 529 College Savings Plan is designed for college savings. Wealthfront 529 College Savings Plan Glide Paths are not formulated for other types of Qualified Education Expenses such as Education Loan Repayment, Apprenticeship Program Expenses, or K-12 Tuition. We believe there may be alternative options better suited for shorter investment horizons. In addition, the tax treatment is less clear with respect to withdrawals for K-12 education at the state level, as determined by your state of residence, and states may ultimately determine the treatment of these withdrawals independently. You should consult your tax advisor for further guidance. In general, a qualified withdrawal is any distribution from an Account that is used to pay for the Qualified Education Expenses of a Beneficiary. Qualified Education Expenses Qualified Education Expenses currently include tuition, fees, and the costs of textbooks, supplies, and equipment required for the enrollment or attendance of a Beneficiary at an Eligible Educational Institution; certain costs of room and board of a Beneficiary for any academic period during which the Beneficiary is enrolled at least half‐time at an Eligible Educational Institution; expenses for “special needs” services needed by a special needs Beneficiary which must be incurred in connection with the Beneficiary’s enrollment or attendance at an Eligible Educational Institution; expenses for the purchase of computer or peripheral equipment (as defined in section 168(i)(2)(B) of the Code), computer software (as defined in section 197(e)(3)(B) of the Code), or Internet access and related services, if the equipment, software, or services are to be used primarily by the Beneficiary during any of the years the Beneficiary is enrolled at an Eligible Educational Institution; K-12 Tuition; Apprenticeship Program Expenses; and Education Loan Repayments. Eligible Educational Institution Generally, Eligible Educational Institutions include accredited post-secondary educational institutions in the United States or abroad offering credit toward an associate’s degree, a bachelor’s degree, a graduate level or professional degree, or another recognized post-secondary credential, and certain post-secondary vocational and proprietary institutions. Such Eligible Educational Institutions must be eligible to participate in U.S. Department of Education student financial aid programs. For additional information, please visit xxx.xxxxx.xx.xxx.
Qualified Withdrawals. A withdrawal used to pay Qualified Higher Education Expenses of the Designated Beneficiary is a Qualified Withdrawal.
Qualified Withdrawals. It is the Account Owner’s and Beneficiary’s responsibility, as applicable, to obtain and retain documents related to the withdrawal to substantiate the withdrawal classification to the Internal Revenue Service.
Qualified Withdrawals. If a Qualified Withdrawal is made from an account, no portion of the distribution is includable in the gross income of the Account Owner. A Qualified Withdrawal is a withdrawal that is solely used to pay the Account Owner’s Qualified Disability Expenses.
Qualified Withdrawals. If a Qualified Withdrawal is made from a STABLE Account, no portion of the distribution is includable in the gross income of the Beneficiary for purposes of federal and Ohio state income taxes. A Qualified Withdrawal is a withdrawal that is solely used to pay the Qualified Disability Expenses of the Beneficiary.
Qualified Withdrawals. A Qualified Withdrawal is a withdrawal from your STABLE Account that is used to pay for any Qualified Disability Expenses of the Beneficiary. Qualified Disability Expenses are any expenses that (1) are incurred at a time when the Beneficiary is an Eligible Individual,
Qualified Withdrawals. The earnings portion (if any) of a Non-Qualified Withdrawal will be treated as ordinary income to the recipient and may also be subject to an additional 10% federal tax. ............................................................................................................................................................................................................
Qualified Withdrawals. A Non-Qualified Withdrawal is a withdrawal that is not a Qualified Withdrawal or an Outgoing Rollover. The earnings portion of a Non-Qualified Withdrawal is subject to federal income tax, possibly including the Additional Federal Tax. Non-Qualified Withdrawals may also be subject to state and/or local income tax. For those Beneficiaries subject to California income tax, the earnings portion of a Non-Qualified Withdrawal is subject to California income tax and the Additional California Tax. Form 1099-QA. For any year in which there is a withdrawal from an Account, CalABLE will provide an IRS Form 1099-QA. This form will set forth the total amount of the withdrawal and identify the earnings and principal portions of any withdrawal.
Qualified Withdrawals. A Non-Qualified Withdrawal is any withdrawal that does not meet the requirements of being: (1) a Qualified Withdrawal; (2) a rollover from the STABLE Account; or 3) a Program- to-Program Transfer out of the Plan. The earnings portion of a Non-Qualified Withdrawal is subject to federal income taxation and the Additional 10% Tax except in certain limited circumstances. The federal income tax and the Additional 10% Tax are on earnings. See “Tax Considerations” for more information. Information regarding the Ohio income taxation of withdrawals from a STABLE Account may be found in “Tax Considerations.” Information regarding tax treatment in Partner States may be found in the Partner State Supplements at the end of this Plan Disclosure Statement. This Plan Disclosure Statement does not address the potential effects of the tax laws of any states other than Ohio and Partner States. You should consult a qualified tax Using Your Account advisor regarding how both state and federal tax laws may apply to your particular circumstances.
Qualified Withdrawals. A Qualified Withdrawal is a withdrawal from an Account used to pay for Qualified Disability Expenses. Qualified Withdrawals are federal income tax free for the Beneficiary. They are also California income tax free if the Beneficiary is subject to California income tax. Qualified Disability Expenses are any expenses incurred at a time when the Beneficiary is an Eligible Individual that relate to the blindness or disability of the Beneficiary, and are for the benefit of the Beneficiary in maintaining or improving his or her health, independence, or quality of life. Such expenses include, but are not limited to, expenses for education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses that may be identified from time to time in future guidance published by the IRS. In order to implement the legislative purpose of assisting Eligible Individuals in maintaining or improving their health, independence, and quality of life, the U.S. Treasury Department and the IRS have taken the position that the term “Qualified Disability Expenses” should be broadly construed to permit the inclusion of basic living expenses and should not be limited to expenses for items for which there is a medical necessity or which provide no benefits to others in addition to the benefit to the Eligible Individual. For example, expenses for common items such as smart phones could be considered Qualified Disability Expenses if they are an effective and safe communication or navigation aid for a child with autism.
