Do you need to withdraw funds to pay college bills for the beneficiary of your New York's 529 College Savings Program Direct Plan account? If so, we will promptly mail the funds to you, the student beneficiary of your account, or an eligible college or university as soon as we receive your withdrawal instructions.

You can request a withdrawal through our Web site in one of two easy ways:

• Log on, then click the account number you wish to act on. Select "Asset Management," then click "Make a Withdrawal," and tell us how much to withdraw and who should receive the funds. We'll take it from there. This is the fastest and easiest way to make a withdrawal.
  
  
• Download the Withdrawal Request Form, then print, complete, and mail the form to us. To avoid processing delays, make sure you've filled out all sections of the form. Also, make sure you factor mailing time into your planning.
  
  

All qualified withdrawals requested online or by phone may be sent to the school or the beneficiary by check, or to the account owner electronically (if bank instructions are established on your account) or by check. If a paper check is requested, it will take longer for the recipient to receive the money, due to mailing time. If the proceeds from your withdrawal are being sent directly to the school, they will be sent through New York's Higher Education Services Corporation (HESC), which may take an additional three to five business days.

You don't have to pay federal or New York State income taxes on distributions from your account if the funds are used for qualified education expenses. Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements, and certain withdrawals are subject to federal, state, and local taxes.