Non-qualified Distributions | WA GET / WA529

‌

Nonqualified Distributions

Summary of required documentation

Nonqualified Distribution Summary

Distribution Type	Distribution Value	Units Must Meet Two-Year Wait	Full or Partial Distributions	Comments/Documentation Required**
Account cancellation	Amount of all contributions less any applicable fees.	No	Full amount only	Account must have no prior distributions to qualify for cancellation. GET will retain any contributions made from WA529 promotions or supplemental units. If any portion of your contributions is from a rollover or transfer from another account, there may be tax implications.

Nonqualified Distributions

Earnings may be taxed as ordinary income, additional 10% IRS tax penalty may apply

Distribution Type	Distribution Value	Units Must Meet Two-Year Wait	Full or Partial Distributions	Comments/Documentation Required**
Financial Hardship	Units distributed at the current GET payout value	No	Full amount only	Documentation of financial hardship for the account owner, such as job loss or reduction, eviction, or utility disconnection, is required.
Financial Hardship		No	Full amount only	Letter from bankruptcy trustee with instructions for distribution. Copy of bankruptcy filing documents. Refund will be payable per court documents.
Bankruptcy		No	Full or partial
Nonqualified Distribution		Yes	Full or partial	Distribution for expenses not meeting the IRS definition of Qualified (see Qualified Higher Education Expenses) Must withdraw all eligible units in the account.

Other Distributions

**Earnings portion taxed as ordinary income, no additional tax penalty* except where noted**

Distribution Type	Distribution Value	Units Must Meet Two-Year Wait	Full or Partial Distributions	Comments/Documentation Required**
Death or Disability of the Student Beneficiary	Units distributed at the current GET payout value	No	Full amount only	Death of the student: A copy of the student's death certificate. Disability of the student: Documentation from a medical professional stating that the student's disability prevents the student from attending any educational institution.
Death or Disability of the Student Beneficiary		No	Full amount only	Documentation of the scholarship-awarding entity, the scholarship amount, and the applicable academic term. Account owner must resubmit the request for scholarship refunds for subsequent years. Cannot exceed the scholarship amount or the number of eligible units available for that academic year. Refunds for scholarships must be requested during the academic year in which the scholarships are awarded.
Scholarship		Yes	Full or partial