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How to use your Invest529 account

Withdrawing from an Invest529 Account

It's finally time to use your Invest529 account. Learn about the process of requesting a withdrawal and some other helpful tips to keep in mind.

Qualified Expenses

Funds may be used for any of these approved expenses:

Higher Education

Tuition, fees, meals, room & board, textbooks, supplies and more

K-12 Education

Tuition at private, public and religious schools

Student Loan Repayment

Amounts paid on qualified student loans

Registered Apprenticeship Program

Fees, supplies and required equipment

Read more on qualified uses

Smart Savers Academy: Paying for Higher Education with Invest529

Topics Include:

  • Communications sent from Virginia529
  • Submitting documents and forms
  • Reporting 529 savings on the FAFSA
  • Responsibilities and deadlines
  • Eligible schools and expenses covered
  • Tax forms and documentation

Ready to withdraw funds from your account?

Withdrawals can be requested from your online account. Follow the steps below to get started.

  • 1

    Review the Invest529 Withdrawal Guide

    The guide provides detailed information on requesting a withdrawal, qualified expenses, tax reporting and other helpful information.

  • 2

    Log in to your online account

    Select “My Profile” to review and update your contact information.

  • 3

    Submit a withdrawal request

    Select "Manage My Accounts," then "Withdraw Funds." Withdrawals are typically processed within 2-3 business days.

Request a withdrawal View Withdrawal Guide (PDF)

Using Your Account FAQs

It’s not required to report withdrawals used for qualified higher education expenses on your federal tax return. Virginia529 will issue an IRS Form 1099-Q (Qualified Tuition Program Payments) each year in which a withdrawal is made:

  • For withdrawals made payable to the student or a school, the 1099-Q is sent to the student.
  • For withdrawals made payable to the account owner, the 1099-Q is sent to the account owner.
  • 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.

The same qualified higher education expense may not qualify for more than one tax benefit  (e.g. tax-free withdrawals AND a federal tax credit). 

For more information, view the blog article 529 Plans and Your Tax Return, the 1099-Q Fact Sheet, or the Invest529 Withdrawal Guide.

If you are a Virginia taxpayer, non-qualified withdrawals may require the recapture of prior Virginia income tax deductions. If you live outside of Virginia, please check with your state’s tax department to determine your state’s treatment of income from another state’s qualified tuition program.

Find information about tax benefits for education including examples, in IRS Publication 970, also available by calling the IRS toll-free at 1-800-829-1040. Your tax consequences depend on your individual circumstances. You should consult a tax advisor regarding specific tax consequences of taking withdrawals from your Virginia529 account(s).

Account owners can access their Form 1099-Q in their online account at

If a withdrawal was made directly to a student or the student’s school, then the student will need to set up their online login at to access their Form 1099-Q.

If funds were withdrawn from your Virginia529 account in 2022, tax documents providing the 2022 withdrawal information (IRS Form 1099-Q) will be posted online and mailed in January 2023.

If the withdrawal was paid directly to the student or to the student's school: the Form 1099-Q will be mailed to the student.

If the withdrawal was paid directly to the account owner: the Form 1099-Q will be mailed to the account owner.

To prevent delays in receiving your Form 1099-Q, you should log in to your Virginia529 account online at and verify that your address and the student's address are up to date.

Like any non-retirement investment or savings, 529 accounts may affect eligibility for need-based financial aid – however, the impact is minimal. For accounts owned by parents and dependent students, the Free Application for Federal Student Aid (FAFSA) assesses 529 assets at about 5.64 percent of the value when calculating the Student Aid Index (SAI) for financial aid eligibility.  Accounts owned by other parties will impact eligibility differently. For more information, consult or an educational financial aid advisor.

See all FAQs

Other Helpful Resources

Invest529 Withdrawal Guide

Read this guide to find more helpful information about using your account.

Invest529 Calculators

Use these tools to determine future higher education costs and plan your saving strategy.

529 Plans and Your Tax Return

Read about factors to consider when preparing your tax return.