How to Write a Check to a 529 Plan

A 529 plan serves as a tax-advantaged savings vehicle designed to help families cover qualified education expenses. These plans, established under Internal Revenue Code Section 529, offer tax-deferred growth on contributions, and withdrawals used for eligible educational costs are tax-free. This includes a broad range of expenses such as tuition, fees, books, supplies, equipment, and up to $10,000 annually for K-12 tuition or certain apprenticeship program costs. Contributing to a 529 plan via a physical check is a straightforward process when specific details are carefully managed.

Identifying Key 529 Plan Information

Before initiating a check contribution, it is important to gather specific account details to ensure the funds are correctly applied. The 529 plan account number is a unique identifier, typically ranging from 7 to 13 digits, and can usually be located on recent account statements or within the online account portal. The official and complete name of the 529 plan is necessary, as this is the exact payee name required on the check. For instance, this might be “New York’s 529 College Savings Program Direct Plan” or “Fidelity Brokerage Services LLC” if it is a Fidelity-managed 529 account.

The full legal name of the beneficiary is also required. This helps the plan administrator accurately attribute the contribution. Identify the specific mailing address designated by the 529 plan administrator for check contributions. This address is usually distinct from general correspondence addresses and can be found on the plan’s official website, in contribution forms, or within account documents.

Writing the Check Details

Completing the check involves careful attention to each field. Begin by accurately dating the check in the top right corner. On the “Pay to the Order of” line, write the full and official name of the 529 plan exactly as it appears in your plan documents. Including “FBO [Beneficiary Name]” (For the Benefit Of) after the plan name can clarify the intended recipient and help ensure proper crediting.

Next, write the numerical amount of your contribution in the small box to the right of the payee line, ensuring the decimal point and cents are clearly indicated. On the line below, spell out the exact contribution amount in words, followed by “and 00/100 Dollars” for whole dollar amounts. Draw a line through any remaining blank space on this line to prevent unauthorized alterations.

The memo line, located in the bottom left corner of the check, is important for 529 plan contributions. Here, include the 529 plan account number and the beneficiary’s full name. This information aids the plan administrator in the accurate application of your contribution.

Sign the check with your legal signature, ensuring it is legible and matches the signature on file with your bank. Use a non-erasable pen to complete all fields, enhancing security and integrity.

Sending Your Contribution

After completing the check, securely send your contribution to the 529 plan administrator. Many 529 plans require or recommend including an accompanying form, such as an “Additional Purchase Form” or “Contribution Form,” with your check. These forms, available for download from the plan’s website, contain fields for the account number, beneficiary details, and contribution amount, assisting the plan in processing your payment.

Place the completed check and any required forms securely in an envelope and apply sufficient postage. Mail delivery and processing times for check contributions can vary, generally taking between 5 to 10 business days for funds to be received and posted. Once processed, funds are typically available for withdrawal within 7 business days. Monitor your 529 plan account online or check for a confirmation statement to verify your contribution has been received and credited.