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What are non-qualified withdrawals?

April 26, 2017non-qualified withdrawals

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What are non-qualified withdrawals?

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A non-qualified withdrawal is any distribution other than a qualified withdrawal or a withdrawal due to student (beneficiary) death, disability or scholarship. The earnings portion of any non-qualified withdrawal is subject to federal income tax and an additional 10 percent federal tax. The account owner is responsible for reporting all withdrawals to the IRS. You should retain receipts, invoices or other documents and information adequate to substantiate that a particular expense is a qualified or non-qualified withdrawal. We cannot provide tax advice and encourage you to consult your own tax advisor before making a withdrawal or taking any other action regarding the Florida College Investment Plan.