I am trying to get my first disbursement from my child’s 529. I would like to have the check made out to and sent directly to the school to avoid any IRS issues. But the 529 personnel says the school must first complete a W-9 form. Is this typical? (waiting on response from school)
Not in my experience. My 529 plan had no issues with sending directly to the school and never asked for anything other than a withdrawal form.
No, I don’t think so. My kids’ 529 did not ask for the TIN (or EIN) of the school in order to issue the check.
If you are having the 529 distribution made payable directly to the school, make sure that the school understands that this is not an outside scholarship. This is important if your student is receiving institutional aid. There have been reports of schools reducing institutional aid on the mistaken belief that a distribution received from a 529 account was an outside scholarship, as opposed to student/parent funds.