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#46627 - 02/09/11 11:54 AM Upromise
chickbull Offline
Member

Registered: 01/21/01
Posts: 47
If a check is requested from Upromise rather than investing in a 529 plan, can the funds be used personally for a personal IRA contribution? In pervious years a contribution was made to a 529 plan.

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#46629 - 02/09/11 05:19 PM Re: Upromise [Re: chickbull]
meb24 Offline
Member

Registered: 02/27/06
Posts: 77
Loc: PA
If you are referring to Upromise REWARDS for making purchases from participating companies, you can request a check at anytime (there are some minimum and/or maximum amounts for any one withdrawal) and use the money for any purpose you choose - these REWARDS are considered rebates. If you otherwise QUALIFY to contribute to an IRA (i.e. earned wages, etc), you can use this money for that purpose.

If you are referring to the Upromise College Fund 529 Plan, I would think the withdrawal would have to be used for QHEE. Otherwise, it would be considered a non-qualified withdrawal and tax implications would apply.

The REWARDS program is separate from the Upromise COLLEGE FUND 529.

Hope this info helps.

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#46630 - 02/09/11 06:28 PM Re: Upromise [Re: meb24]
chickbull Offline
Member

Registered: 01/21/01
Posts: 47
Thank you mab. No, the check is from Upromise not from a 529 Plan. It was intended to be contributed to a 529 but hasn't been yet. We're just deciding where to use it.

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