Utah Educational Savings Plan

Withdrawals: A Step-by-Step Guide

Learn the basics of withdrawing funds from your UESP account for your beneficiary’s qualified higher education expenses.

Step 1: Determine if a withdrawal from your account is considered by the IRS to be either qualified or non-qualified.

Qualified Withdrawal

To be considered qualified, a withdrawal must be:

  • Used for the beneficiary’s qualified higher education expenses at an eligible educational institution
  • Taken in the same time period in which the expenses were incurred

Qualified higher education expenses include:

  • Tuition and fees
  • Books, supplies, and equipment required for enrollment or attendance. 
  • Expenses for the purchase of a computer or peripheral equipment, computer software, or internet access and related services when used primarily by the beneficiary while enrolled at an eligible educational institution
  • Room and board for students enrolled at least half-time, limited to:
    • The allowance for room and board included in the cost of attendance as determined by the eligible educational institution, or
    • If greater, the actual invoice for room and board for a student residing in housing owned and operated by the eligible educational institution.
  • Expenses for special-needs services incurred in connection with the enrollment or attendance of a special-needs beneficiary

An eligible educational institution is any institution that participates in federal financial aid programs for students. Visit fafsa.ed.gov for a list of participating schools, including schools abroad.

Non-Qualified Withdrawal

A withdrawal that is not used for qualified higher education expenses of the beneficiary is considered non-qualified. For example, the IRS does not consider transportation a qualified expense.

Tax considerations of a non-qualified withdrawal include:

  • The earnings portion is subject to federal and state income taxes and a 10 percent federal penalty tax.
  • Utah residents may have to recapture any Utah state income tax credits or deductions claimed in prior years.

Exceptions to the 10 percent federal penalty tax:

  • In the case of a withdrawal due to a beneficiary’s death, disability, receipt of a scholarship, or attendance at a military academy, the earnings portion of that withdrawal will be subject to federal and state income tax, but will not be subject to the additional 10 percent federal penalty tax.

Step 2: Determine the recipient of the funds from among the following:

  • You (the account owner/agent), if you make the payments and purchases for the beneficiary
  • Your beneficiary, if they make the payments or purchases
  • The eligible educational institution (please provide UESP with the appropriate mailing address and your beneficiary’s student ID number)

Step 3: Submit a withdrawal request.

Withdrawal Method Allowable Withdrawal Type
Qualified Non-Qualified


A withdrawal initiated online can be directly deposited in a specified checking or savings account if the withdrawal request comes from a UESP individual or institutional account. You can schedule two types of direct deposits:

  • One-time direct deposit—Schedule a withdrawal for up to 90 days in the future.
  • Recurring direct deposit—Schedule a recurring withdrawal to be issued monthly or quarterly to either you or your beneficiary.

Before initiating a direct deposit, you must first register the receiving bank account with UESP in one of two ways:

  • Make a successful online contribution from the bank account to a UESP account. If you have done so in the past 24 months, that bank account is already registered with UESP.
  • Complete UESP’s bank account verification process:
    1. Log in to Account Access.
    2. Click Manage Linked Bank Accounts in the left sidebar.
    3. Click Add Bank Account.
    4. Follow the prompts.

A withdrawal can also be issued as a check mailed to you, the beneficiary, or an eligible educational institution. Allow up to two weeks for a check to arrive in the mail.

To initiate an online withdrawal, log in to Account Access at uesp.org, select Withdrawals in the left sidebar, and follow the prompts.


Withdrawal Request Form (form 300)

Submit form 300 to request a withdrawal be issued as a check mailed to you, to the beneficiary, or to an eligible educational institution.

  1. Obtain a Withdrawal Request form (form 300) in one of the following ways:
    • Download a copy under Forms & Downloads.
    • Call UESP toll-free at 800.418.2551 and request
      it be mailed.
    • E-mail info@uesp.org and request it be e-mailed
      to you.
  2. Complete and submit form 300 in one of the
    following ways.

    • Mail
      PO Box 145100
      Salt Lake City, UT 84114-5100
    • Fax (if no signature guarantee is required)

Allow up to two weeks for a check to arrive in the mail.


Signature Guarantee

Some withdrawals may require a signature guarantee. A signature guarantee is a stamped or typed assurance by a financial institution that indicates a signature is valid. A signature guarantee can be obtained at most financial institutions, including banks, credit unions, or brokerage firms.

A signature guarantee is required for:

  • A single withdrawal request of $50,000 or more
  • Multiple withdrawal requests totaling $50,000 or more within a rolling 90-day period
  • A withdrawal request within 10 calendar days of an address change for the payee
  • A withdrawal request within 10 calendar days of an account owner change
  • Any transaction request with a signature on the form that does not match the account owner’s signature on file

Withdrawal requests requiring a signature guarantee must be mailed to UESP with the original signatures and financial institution stamp. UESP does not accept faxed signature guarantees.

IRS Form 1099-Q

Federal tax law requires that UESP issue IRS Form 1099-Q for the taxable year when funds are withdrawn from an account, including rollovers to another 529 plan. UESP must issue the form by January 31 of the following year. If a portion of or all withdrawn funds are not used for qualified higher education expenses, the earnings portion of that amount must be reported on the recipient’s income tax return. If the withdrawal was sent to the beneficiary or the eligible educational institution, UESP mails Form 1099-Q to the beneficiary. If the withdrawal was sent to the account owner or rolled over to another 529 plan, the account owner receives Form 1099-Q. The person who receives Form 1099-Q is responsible for any tax reporting to the IRS and the appropriate state taxing authority.

Withdrawing from Multiple Accounts

When money is withdrawn from multiple accounts with the same owner and beneficiary, the earnings portion will be computed by UESP on an account-by-account basis, rather than aggregating the accounts.