Before you know it, the next payment for your child’s education will be here, right in the middle of all the holiday festivities. While doing your scheduling, shopping, and celebrating, take a few minutes to prepare your Ohio 529 CollegeAdvantage account to promptly pay the next round of your child’s college and career training expenses for 2025 and 2026. Here’s how to simplify the withdrawal process for your CollegeAdvantage Direct 529 Plan. *
When to pay the college costs
First, decide when you will pay the upcoming college bills. If you plan on paying those qualified higher education expenses in 2025, make the withdrawal request in 2025. If you would rather pay in 2026, then please make the withdrawal in 2026. In accordance with IRS guidelines, you should make a withdrawal from your Ohio Direct 529 account the same calendar year that you paid the higher education expense.
Your 529 withdrawal must not exceed your child’s qualified expenses. When it’s time to file your taxes, the burden of proof for the qualified expenses and the corresponding withdrawals for tax purposes lies with you as the account owner. Therefore, retain all documentation and records of the 529-qualifed expenses and your corresponding Ohio Direct 529 withdrawals to pay them for your income taxes.
Two-factor authentication
Two-factor authentication must be set up to access your CollegeAdvantage Direct 529 Plan. As the name implies, you will need to verify your identity twice with this security protection.
First, log in as normal to your Ohio 529 Plan account with your username and password from a secure device. Your phone number must be current in your online account profile. The number is necessary to set up two-factor authentication, as you will receive either an automated outbound call or a text to receive your PIN (Personal Identification Number). If your phone number is current, you will either be able to receive an SMS text or an automated outbound call.
Two-factor authentication is utilized each time you log-in into your Ohio 529 account(s). In addition, it is also utilized to change your password.
If your phone number is not up to date, please call our Customer Service Department to set up a PIN. The team is available from 8:30 a.m. – 6 p.m. EST Monday-Friday at 1-800-AFFORD-IT (1-800-233-6734). Once you have the PIN, you will need to log in again within five minutes; otherwise, you will need to request a new one. Once the PIN is entered, mark the device as trusted and the authentication process is complete.
Update banking information
Next, verify that your home address and bank account information are correct. If it’s not, update that information now. For security reasons, this information must be on file with Ohio 529 for 15 calendar days before a withdrawal can be processed. To update your records online, select your beneficiary’s account. Then look on the left side of the screen, choose “View Profile and Document.” If you need to change your address, select “Profile” to edit your address. If you need to change bank accounts, select “Bank Information” to make the updates.
How to make an online withdrawal
After updating all your information, you will be ready to make a tax-free 529 withdrawal once you receive the bill for the qualified higher education expenses.
The fastest method to pay an accredited higher education institution is to make a withdrawal request online. Start the process by logging into your account. Next, select the beneficiary’s account from which to make a withdrawal to pay for that child’s qualified costs. Once you have picked the correct account, go to the left side of the screen, and scroll down to the link, “Make a withdrawal.” After that, follow the prompts to make a withdrawal. Withdrawals requested before 4 p.m. EST Monday-Friday will be processed in three to five business days.
You will have three options on where to send the funds: 1) to the school; 2) to your bank account or sent to you; or 3) to your beneficiary’s bank account or a check sent to the beneficiary.
If you choose for the withdrawal to be deposited into a bank account, it will be sent electronically. Once the 529 withdrawal is in your or your beneficiary’s bank account, use the school’s online portal to pay your child’s qualified higher education expenses. Make sure you enter the correct student ID number. Payment processing times will vary; check with the school bursar’s office to confirm the best time to start the withdrawal process to ensure that the payment will not be late.
If you choose for the check to go directly to the school, please be sure to provide Ohio 529 with the correct student ID number and the correct school address on the online withdrawal form. Ohio 529 does not provide school addresses. The payment will be mailed directly to the school.
How to make a withdrawal on READYSAVE 529 app
Since the introduction of the ReadySave app in 2024, over 41,000 Ohio 529 families have downloaded this way to open an account, securely access and review your higher education savings.
The newest feature of the ReadySave 529 app allows you to make an electronic 529 withdrawal to pay for your child’s qualified higher education expenses. You must have your bank account already listed on your 529 account to send the withdrawal to that bank account.
The other option when you make the withdrawal on the app is to have it sent directly to your child’s school. The higher education institute must be able to receive the electronic fund transfers from your Ohio 529 account.
The app also allows you to make one-time contribution to your 529 account from your phone. Or you can set up recurring contributions for as little as $25. Through the app, you can also check your transaction history.
If you haven’t already, please download the READYSAVE 529 app now from the Apple and Google Play app stores. Once you install the app, select Ohio’s 529 Plan from the list of participating 529 programs. You can then log in with the same username and password you use to access your Ohio 529 account online. For those that utilize a smart phone or tablet to manage your account(s), the ReadySave 529 app is the suggested means since it is designed to work for these devices.
How to make a withdrawal with a paper form
You could also mail in a paper Withdrawal Request Form. This will be the slowest withdrawal and payment method. To save time, fill in and then submit the form online. Otherwise, you can print, fill out, and mail in the withdrawal request to the address found on the top of the first page of the form. To have the payment sent directly to the school, review the “Paper Check Delivery to the School” information to fill in section 3C of the form. A check for the withdrawn funds will be mailed directly to the school.
You can also select to have the withdrawal mailed to your home or sent to your or your beneficiary’s bank account electronically. Once the funds are in a bank account, you can either mail a check to the school or use their online portal for payment of the education expenses. Again, this is the slowest method of paying the college expenses. If you choose this route, please start the withdrawal process as early as possible to avoid any late penalties. You may want to verify with the school bursar’s office how long this process will take to complete.
Tax records
No matter which method you choose to make the withdrawal – whether online, app, or by filling out paperwork - make sure to use the withdrawal funds to pay for the qualified higher education expenses in the same calendar that you made the withdrawal. As the account owner, you are responsible for maintaining the records showing that the Ohio Direct 529 Plan withdrawals are used for qualified costs for the IRS.
Contributing to your 529 to make a withdrawal
If you want to deposit additional funds to your Ohio 529 account to pay these upcoming qualified expenses, these new contributions must be in your account at least seven business days before those funds can be distributed and the withdrawal processed. This and other information is covered in the Withdrawals section of the CollegeAdvantage Direct 529 Savings Plan Offering Statement and Participation Agreement.
To have your end-of-year contributions included for the 2025 State of Ohio income tax deduction, contributions from the account owner must be received in good order by CollegeAdvantage before 4 p.m. EST Wednesday, Dec. 31. For non-account owners contributing via Ugift, the contribution must be received in good order before 4 p.m. EST Thursday, Dec. 19.
The most crucial step is to prepare now for upcoming 529 withdrawals. By acting now, your 529 account will be set up to pay your child’s college costs for the next semester. If you have any further questions, our Customer Service Department is available to help from 8:30 a.m. – 6 p.m. EST Monday-Friday at 1-800-AFFORD-IT (1-800-233-6734). You can also email our Customer Service Department at customerservice@collegeadvantage.com. Our office will be closed on Thursday, Dec. 25, 2025; Thursday, Jan. 1, 2026; and Monday, Jan. 19, 2026.
*Please note that this is the withdrawal process for CollegeAdvantage Direct 529 plan accounts only. The withdrawal process is different for the CollegeAdvantage Guaranteed 529 Plan.
This article was originally posted in December 2022 and has been updated to reflect new information for 2025.
