What is a WA529 Scholarship Account (MSA)?
WA529 Scholarship Solutions is a comprehensive service offered by the Washington Education Savings Plans (WA529) that simplifies the administration of scholarship and Children’s Savings Account (CSA) programs through Washington’s GET and WA529 Invest plans.
Nonprofit organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, as well as state or local government entities, are eligible to open a GET Master Scholarship Account (MSA) or WA529 Invest Entity Account. An organization must be Washington-based to establish a GET MSA. An organization does not need to be Washington-based to establish a WA529 Invest Entity Account.
Other legal entities are not permitted to open a GET or WA529 Invest scholarship account but can sponsor students by opening a traditional 529 account in the student’s name. The legal entity may choose to be listed as the Account Owner or designate the student as the Account Owner.
Account types and features
Organizations can manage their scholarship or CSA programs through the GET Prepaid Tuition Plan or WA529 Invest, with each plan offering unique administrative features.
There are no limits to the number of scholarship accounts an organization can hold, and scholarship recipients (students) do not need to be named until a scholarship award is created for them.
A GET MSA can be managed online through our custom GET Scholarship platform, which provides a comprehensive set of tools for structuring scholarship or CSA programs. An authorized representative manages the account and can assign additional administrator roles.
Once a student is identified as a scholarship recipient, the authorized representative can award a scholarship of one of four award types: Managed Award, Reimbursement Award, Transfer Award, or Future Transfer Award (see the GET Scholarship Award Type Chart below for details).
A WA529 Invest scholarship account can be managed online or by completing appropriate forms to provide funds to a student as a traditional scholarship.
Once a student is identified as a scholarship recipient, the authorized representative can award a scholarship by transferring funds from the Entity Account to an individual student’s WA529 Invest account. Organizations interested in utilizing WA529 Invest for CSA programs should contact WA529 Outreach for more details.
Account opening and maintenance
Organizations can open a GET scholarship account by submitting a GET Master Scholarship Account (MSA) enrollment form with appropriate evidentiary information.
To open a WA529 Invest scholarship account, organizations may submit the WA529 Invest Entity Account enrollment form with appropriate evidentiary information.
Deposits and funding
An organization can purchase GET tuition units up front when completing the MSA enrollment form and at any point thereafter, at the price in effect at the time of the purchase of those units.
Initial and subsequent contributions can be made by automatic withdrawal, personal or cashier’s check, money order, or using the online automatic payment option through our website.
Contributions can be made at any time. Note: GET payments made between July and September of each year will be held until that enrollment year’s tuition unit purchase price is set by the WA529 Committee.
An organization can make initial and subsequent contributions to a WA529 Invest scholarship account when completing the Entity enrollment form by automatic withdrawal, personal or cashier’s check, or electronic funds transfer. Contributions can be made at any time, and the funds may be reflected in the account by the next business day.
WA529 Invest maximum account balance limit of $500,000. Accounts that have reached the maximum account balance limit may continue to accrue earnings. There is no two-year wait for WA529 Invest accounts before funds can be withdrawn.
Scholarship fund disbursements
Organizations can award scholarships from their account as Traditional Scholarship Awards or Children’s Savings Account (CSA) Awards.
If a student is a beneficiary of multiple GET Accounts, the total number of GET units across all accounts cannot exceed 800 units. A student can redeem up to 800 units. Certain GET awards can be made at any time, however, the funds must be held for a minimum of two years before they can be redeemed by the student.
Any distribution from a GET or WA529 Invest account must be used for qualified higher education expenses. Non-qualified distributions may be subject to taxes and penalties. The scholarship organization is responsible for understanding any tax implications of the scholarship distributions.
Funds used for qualified educational expenses are typically tax-free to the student. WA529 will provide the student or account owner with the required 1099-Q tax form when a distribution is made. The student will receive the tax form if a distribution is made as a reimbursement to the student or the educational institution. The account owner will receive the tax form if the distribution is made as a reimbursement to the account owner.
Administrative fees
There are no enrollment or maintenance fees for WA529 Scholarship Solutions. However, some investment portfolio options offered in WA529 Invest have annual asset-based fees, which are deducted from the assets in each portfolio.
WA529 MSA Award Types
Once the Organization identifies a student or students to receive a scholarship from the MSA, the Authorized Representative or their designee can award a scholarship from one of four award types.
Managed Award
The Organization retains control of the funds throughout the life of the award. Funds can be earmarked for individual students but remain within the MSA until the final distribution for the student.
- The awarded funds are only distributed when the student needs to pay for qualified expenses, meets the MSA organization’s eligibility requirements, requests the funds, and the MSA organization approves the distribution.
- The award amount and the available date(s) can be adjusted or changed by the MSA Authorized Representative.
- The MSA can designate a specific time and method when the student can officially request their awarded funds.
- The MSA’s Authorized Representative determines if the Organization will review and approve each distribution request that a student makes or if, following the initial distribution, any future requests by the student are automatically approved.
Transfer Award
An Organization wants to award funds to the student via an ownership transfer immediately. The Organization has no control of funds awarded and accepted by a student.
- This option is used when an Organization wants to designate an award and they want the student and/or their family to have full decision-making authority for how the funds are used. GET units must be purchased and remain in the GET Account two years before they can be awarded.
- Funds are transferred to a new or existing GET account owned by the student or their parent or guardian.
- Student options for accepting the award:
- Request the scholarship award be transferred to an existing GET account of the student.
- Create a new GET account for the scholarship award to be transferred to. The new GET Account Owner can be the student, parent, or guardian.
- Once funds are transferred to the recipient’s accounts, the MSA organization releases all ownership rights to the funds.
Future Transfer Award
An Organization wants to award funds to the student by an ownership transfer at a future date. The Organization has full control of the funds until the future transfer date and funds are awarded to and accepted by a student.
- This option is most frequently used when an Organization wants to designate an award of funds from purchased GET units that have not met the two-year hold requirement, or if an Organization wants to retain control of the funds until a future date when student is expected to enroll in an institution of higher education.
- When this award is made, the student will be able to see the funds awarded to them, but funds will not be available to the student until the future date indicated by the Authorized Representative when the award is made.
- Once the future date arrives, the remainder of this award type follows the same acceptance parameters as the immediate transfer award.
Reimbursement Award
An Organization retains control of the funds throughout the life of the award. The MSA receives a reimbursement check for qualified expenses paid out of pocket for a student.
- The Organization pays for qualified educational expenses out-of-pocket for the awarded student. The GET Program will reimburse the Organization for the expenses when the Authorized Representative makes a request.
- The Authorized Representative completes a GET Reimbursement Form or submits the request in the scholarship portal. Once the form is processed, the award is complete, and a state-issued warrant (check) is made directly to the Organization.
- The Scholarship Entity maintains records for all funds distributed by a reimbursement in case of future audits by the IRS.
Account Closing or Termination
Refunding a GET MSA may be subject to program penalties and fees. Non-qualified withdrawals from either GET or WA529 Invest may incur taxes and penalties on any earnings.
WA529 bears no responsibility in determining if the earnings are subject to federal income tax, distribution tax, or state tax.
It is the responsibility of the scholarship organization to consult with a tax advisor and determine if a distribution is subject to federal income tax on the earnings portion of the refund and if nonqualified refunds are subject to the Distribution Tax and any applicable state tax.
Terms and conditions
The GET Program Details Booklet and GET Master Scholarship Agreement contain important information you should review before establishing a GET Master Scholarship Account (MSA). Please read it carefully and save it for future reference.
The WA529 Invest Program Details Booklet contains important information you should review before establishing a WA529 Invest Entity (Scholarship) Account. Please read it carefully and save it for future reference.
For More Information
Associate Director for Community Engagement
WA529Outreach@wsac.wa.gov
(360) 485-1198
GET Contact Center
GETInfo@wsac.wa.gov
(800) 955-2318