How to Fill Out and Submit the Merrill Lynch 529 Withdrawal Form

You can request a distribution from a Merrill Lynch 529 account two ways: online at mymerrill.com or merrilledge.com for most standard withdrawals, or by completing and mailing the paper 529 College Savings Plan Withdrawal Request Form.¹ The online path is faster for routine distributions. The paper form is what you need for larger amounts, payments to third parties, and plan rollovers.

Filling Out the Paper Form

Section 1: Account and Beneficiary Information

Enter the account owner’s full legal name (last, first, middle initial), the last four digits of the owner’s Social Security number, and the 529 account number. Then enter the designated beneficiary’s name, mailing address, and the last four digits of their Social Security number.¹ Check every digit. A mismatched account number or SSN is the fastest way to have the form kicked back.

Section 2: Distribution Amount and Type

Enter an exact dollar amount for each portfolio or unit class you want to withdraw from. The form specifically says not to round. If you need $4,327.50, write $4,327.50, not $4,328.¹ You cannot request a percentage of your balance.

The form then asks you to check a box describing the purpose of the withdrawal. The options are more specific than “qualified” or “non-qualified.” You will see separate checkboxes for K-12 tuition, student loan repayment, apprenticeship expenses, 529 plan rollovers, and ABLE account rollovers, in addition to general higher education expenses.¹ Pick the one that matches your situation. If your withdrawal does not fit any qualified category, it will be treated as a non-qualified distribution, with the tax consequences described below.

Section 3: Payment Method

You have several options for how the money is delivered:

Check mailed to the account owner at the address in Section 1.
Check mailed to the beneficiary at the beneficiary’s address.
Direct payment to an educational institution. You supply the school’s name and address plus the student’s name and either the last four digits of their SSN or the student ID number.
Transfer to a linked Merrill account, for existing Merrill clients.
Transfer to a linked Bank of America checking or savings account.

Paying the school directly is the cleanest option from a record-keeping standpoint, because it makes the paper trail obvious if the IRS ever questions whether the funds went to qualified expenses. Include the student’s institutional ID number so the school can match the payment.¹ One tax-reporting consequence to keep in mind: if the payment goes to you rather than to the school or beneficiary, you receive the Form 1099-Q and carry the reporting responsibility, not the student.

When You Need a Medallion Signature Guarantee

Some withdrawal requests require a Medallion Signature Guarantee. This is stricter than a standard notarization because the guaranteeing institution takes on financial liability for the authenticity of your signature. Merrill Lynch may require one when the distribution is large, when funds are going to a third party other than the account owner or beneficiary, or when a check is being sent to a recently changed address. The specific thresholds and triggers are set by Merrill Lynch’s internal policies and can change, so confirm with your advisor or the service center before submitting an unusual or large request.

You can obtain a Medallion Signature Guarantee at a bank, credit union, or brokerage firm that participates in the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), or the New York Stock Exchange Medallion Signature Program (MSP). Many institutions provide them free to existing account holders; non-customers may be charged a fee. The stamp must appear on the physical form before you mail it. Forms that arrive without a required guarantee are rejected outright.

Where to Send the Form and How Long It Takes

Sign and date the form, then send it to the address listed on your 529 account statement. The form directs you to your statement address rather than a single universal processing center, so check the most recent statement for the correct destination.² Fax submission may also be available; the number is typically printed on the form’s instruction sheet.

Once Merrill receives the paperwork, processing takes up to five business days.¹ After that, delivery time depends on the method you chose. Electronic transfers to linked bank accounts typically arrive within a few business days. Physical checks take longer; plan on roughly a week for standard mail after the check is cut. If you need funds for a tuition bill with a firm deadline, submit the form at least two to three weeks early to build in a cushion for processing and mail transit.

Choosing the Right Category on the Form

The checkbox you select in Section 2 tells Merrill how to characterize the distribution. The line matters because it drives the tax treatment on the earnings portion.

For general higher education, qualified expenses include tuition, fees, books, supplies, and equipment required for enrollment at an eligible postsecondary institution. Room and board also qualify, but only if the student is enrolled at least half-time, and the amount cannot exceed the school’s published cost-of-attendance allowance for housing (or the actual invoice if the student lives in campus-owned housing).³ Computer equipment, software, and internet access qualify as long as the beneficiary uses them primarily during enrollment years; software designed mainly for games or entertainment does not qualify unless it is predominantly educational.⁴

The other qualified categories on the form have their own limits:

K-12 tuition. Up to $20,000 per beneficiary per year at a public, private, or religious elementary or secondary school, effective January 1, 2026. The K-12 limit doubled from $10,000 under federal legislation signed in July 2025. K-12 withdrawals cover tuition only, not books, supplies, or transportation.³⁵
Student loan repayment. Up to $10,000 over the borrower’s lifetime. Each of the beneficiary’s siblings can also receive up to $10,000 from 529 funds for their own loans.
Apprenticeship programs. Fees, books, supplies, and equipment for programs registered with the U.S. Department of Labor.
Roth IRA rollover for the beneficiary. This has its own checkbox on the form and is subject to separate eligibility rules under SECURE 2.0.

If none of these boxes fit, the withdrawal is non-qualified. In that case, only the earnings portion is taxed, because you funded the account with after-tax dollars. Earnings are taxed as ordinary income at the recipient’s marginal rate, and the IRS adds a 10% additional tax.⁶ The 10% additional tax is waived if the beneficiary receives a scholarship (up to the scholarship amount), if the beneficiary dies or becomes disabled, or if the beneficiary attends a U.S. military academy and the withdrawal does not exceed the cost of attendance. State-level consequences can stack on top: some states that gave you a deduction for contributions will recapture that deduction on a non-qualified withdrawal.

Form 1099-Q and Records to Keep

Every 529 withdrawal triggers a Form 1099-Q reporting the total distribution, the earnings portion, and the basis. Merrill Lynch must furnish it to the recipient by January 31 of the year following the distribution.⁷

Who receives the 1099-Q depends on where the money went. If the distribution was paid directly to the beneficiary, to an educational institution for the beneficiary’s benefit, or rolled over to the beneficiary’s Roth IRA, the beneficiary is listed as the recipient. In all other cases, including payments to the account owner, the account owner receives the form.⁸ Whoever receives it is responsible for showing on their tax return that the funds went to qualified expenses.

The 1099-Q does not tell the IRS whether the withdrawal was qualified. You make that determination on the return by comparing total distributions against total qualified expenses for the year. Keep tuition invoices, housing contracts, and receipts for books and equipment at least until the statute of limitations on that tax year closes. If you sent a distribution to yourself but paid the school separately, keep documentation that matches the withdrawal amount to the tuition bill.

1
Merrill Lynch. 529 College Savings Plan Withdrawal Request Form
2
Merrill Lynch. NextGen 529 Client Direct Series Withdrawal Request Form
3
Office of the Law Revision Counsel. 26 USC 529 – Qualified Tuition Programs
4
Internal Revenue Service. 529 Plans – Questions and Answers
5
Smart529. Expanded 529 Plan Benefits Under Recent Federal Legislation
6
Internal Revenue Service. Topic No. 313, Qualified Tuition Programs (QTPs)
7
Internal Revenue Service. Publication 1099 (2026), General Instructions for Certain Information Returns
8
Internal Revenue Service. Instructions for Form 1099-Q (04/2025)