FAQs

An electronic payment to a school is typically delivered within 2-4 business days (the days on which banks are open). Please note that depending on your school, it may take additional time for the payment to be reflected on the student account.

Vestwell uses technology from Flywire to automatically send electronic payment transactions to any school that connects to the disbursement services. Payments are delivered via ACH to the school’s bank account on record, and schools will receive notification with relevant details, such as the payment amount, the student’s full name and ID number, as well as the VT529 name. The connection to Flywire is meant to optimize the payment experience for families, allowing them to pay for school with ease.

It’s easy to make withdrawals from your account online. You can withdraw as little as $5 each time and transfer that money into any bank account linked to your VT529 account. If you have more than one investment, you can also decide which investment you’d like to pull money from.

If you want to pay an eligible education institution bill or tuition, you can request checks directly made out to them online or by using our Withdrawal Form (PDF). You can also send an electronic payment directly to them online as well using our Flywire integration. There is a $10 Flywire fee for electronic payment withdrawals.

Note, any money withdrawn from your account should be used for qualified expenses.

Complete the setup process in three simple steps:

1. Log in to your VT529 account and click on “Direct Deposit” on the Total Balance tile

2. Enter your information and retrieve your direct deposit details — including a unique routing and account numbers 

3. Complete the process by providing your employer with the direct deposit details, the same as you would with your own checking or savings account

You must contact us so the payment can be reversed, the funds returned, and the money will then be allocated back to the original account.

Refunds must be requested directly from your school. As the payee, they will decide whether they wish to return the payment and for which amount.

Payments can be canceled by 3:50 pm ET on the day of the payment request. If your request has been processed or your school has already received your funds, you will not be able to cancel your payment. If you would like to request a refund, you will need to direct your request to the school.

Yes. If you make a withdrawal from your account for a non-qualified expense, the earnings tied to that distribution will be considered taxable income. There is a 10% federal tax penalty made on any earnings used to pay for non-qualified expenses. You will also have to pay back the state for any state income tax credits you have taken for contributions made to your account in relation to the amount withdrawn. Remember, your account grows and earns interest, tax-free, and when you withdraw those savings to use for qualified educational expenses, you can spend it tax-free too. These accounts are designed to be flexible, with most expenses related to higher education qualifying as eligible. You will only pay taxes if you use your account funds to pay for non-qualified expenses.

There are a few exceptions. You will not need to pay this additional 10% federal tax penalty if a withdrawal is made because the beneficiary has died or become disabled; has received a scholarship (the withdrawal amount cannot exceed the scholarship amount); or if the beneficiary has enrolled in an eligible military academy (the withdrawal amount cannot exceed the value of the education). If you’re still unsure about how things may affect your taxes, you may want to speak to a tax advisor for more information.

If you need to edit or remove your account’s automatic contributions, simply sign into your account, click the “Transfers” link at the top of the page, and then select “Manage.” You can delete and re-enter a new desired contribution amount, and edit the frequency or day of the month the contribution is being made, where the contribution is coming from, and more.

It’s easy to set up automatic monthly contributions from one bank account or more into your VT529 account. You can securely link your account(s) online and adjust your contribution amount accordingly. Plus, you can contribute as little as $5 each time.

Follow these steps to set up your automatic contributions:

1. Create or sign in to your account.

2. Click the "Transfers" link at the top of the page.

3. In the Contributions section, select “Recurring monthly contribution” in the Frequency drop-down list.

4. In addition to standard recurring contributions, you can also set up automatic payroll direct deposits. These payments come directly out of your paycheck, after taxes, and go into your VT529 account.