Back-to-school time is just around the corner, which means it will soon be time to pay bills for tuition, dorm fees, books, supplies and other qualified higher-education expenses. The quickest and easiest way to pay these bills is by requesting an online withdrawal from your College Savings Iowa account.*
To request an online withdrawal, go to CollegeSavingsIowa.com and log on to your account. Next, select the beneficiary's account and then select Asset Management. Scroll down to Make a Withdrawal and indicate the amount you wish to withdrawal and specify who should receive the money.
All qualified withdrawals requested online, by phone or by complete the Withdrawal Request Form may be sent by check to the account owner, the student beneficiary or the school. If you've set up banking instructions, you can also have withdrawals sent to the account owner by electronic transfer. Note: If you add or change bank information, there is a 15-calendar-day verification period before the plan can transfer money electronically to that account.
If you request a withdrawal and are having the money sent directly to a college or university, you should include the student's ID number in the "Memo" field. If this information isn't included, it could delay the crediting of your payment to the student's account.
*The earnings portion of nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local taxes.