FAQ: What happens if the beneficiary does not use the EdVest account?
Money not used by the beneficiary:
– The account can be re-designated to another beneficiary who is a member of the family (Father, mother, son, daughter, or an ancestor or descendant of any above. Stepfather, stepmother, stepson, stepdaughter, brother, sister, stepbrother, or stepsister. Brother or sister of father or mother. Brother-in-law, sister-in-law, son-in-law, daughter-in-law, father-in-law, mother-in-law. Son or daughter of a brother or sister. Spouse if designated beneficiary or any of the above individuals, first cousin.)
– The funds can remain in the account until the beneficiary returns to school.
– You can close the account and receive the balance at any time. However there is a 10% additional federal tax for withdrawing funds this way, and federal and state income taxes must be paid. The penalty is waived if the distribution is due to the death or disability of the beneficiary or if a scholarship or nontaxable grant is awarded to the beneficiary.
Need more information on EdVest? Click here!
- FAQ: Who can open an EdVest account? (wistatetreasury.wordpress.com)
- FAQ: What are the WI State benefits with EdVest? (wistatetreasury.wordpress.com)
- FAQ: What are the benefits of EdVest? (wistatetreasury.wordpress.com)
- FAQ: Does EdVest have a flexible contribution option? (wistatetreasury.wordpress.com)
- FAQ: How can I stay up to date on my EdVest account? (wistatetreasury.wordpress.com)