What is a Medallion Signature Guarantee?

Some 529 plans require a Medallion Signature Guarantee before they will transfer 529 plan funds to another 529 plan.

A Medallion Signature Guarantee verifies your identity for the purpose of transferring securities, such as stocks, bonds and savings bonds.

A medallion signature guarantee must be issued by a bank, brokerage, credit union or other financial institution that participates in the STAMP, SEMP or MSP medallion signature guarantee programs.

A notary is not enough. The financial institution that issues the medallion signature guarantee accepts liability for any forgeries or unauthorized transfers. For this reason, you must be an established customer of the financial institution that issues the medallion signature guarantee. You may also be required to show a government-issued photo ID, such as a driver’s license.

A medallion signature guarantee might not be needed if you are the account owner of both 529 plan accounts. Requirements vary by 529 plan.