Plan Usage – Investment Plans

Your Investment Plan funds can be used at colleges, universities, trade and technical schools nationwide, as well as used for apprenticeship programs and for Qualified Expenses for grades K-12.

The higher education institution must be eligible to participate in a student financial aid program under Title IV of the Higher Education Act of 1965 (20 U.S.C. Section 1088).

To check the eligibility of a school, visit fafsa.ed.gov and select “School Code Search.” Or, contact the school directly.

The Account Owner can submit a Withdrawal Request from their online account for the desired amount, or request that funds be paid directly to the school. Transactions are processed within two business days.

Withdrawals can be used tax-free as long as they are spent on qualified educational expenses. Qualified expenses include tuition and fees, housing, meal plans, books and supplies, as well as computers and equipment.

Housing and meal plans are considered qualified expenses when the student is enrolled at least half-time.

You can withdraw and use the funds for other purposes, but doing so may have tax consequences. It is suggested that you keep all expense receipts for tax reporting.

Qualified Higher Education Expenses include tuition, fees, housing and meals plans (for each semester the student is enrolled at least half-time), textbooks, supplies, computers, peripheral equipment, software and internet service primarily used by the student; and special needs services incurred in connection with enrollment or attendance.

Yes, you may withdraw up to $20,000 per year, per beneficiary, from an Investment 529 Plan for K–12 tuition and other qualified education expenses, which can include certain curriculum materials, tutoring, standardized test fees, dual-enrollment programs, educational therapies for students with disabilities, and approved online learning platforms.

There is no set time period for using your Investment Plan funds.

No. It is the responsibility of each student to qualify for admission to the college or university of their choice.

Yes. A Form 1099-Q will be provided in January of each year to students who have used their plan during the previous calendar year. In addition, a Form 1099-Q will be provided to an Account Owner who has received funds during the previous year. Tax documents will be available in your online account at myfloridaprepaid.com and mailed based on your delivery preferences.

For specific tax information, please consult an investment adviser or certified public accountant.