This year, the PFD has arrived. Everyone probably smiled when they saw the money in their accounts.

However, if you received your child's share, you might have a dilemma. Should you mix it with your living expenses or set it aside for your child?

I'm in favor of setting it aside. So today, I will outline how to deposit your child's PFD dividend into an Alaska 529 account.

First, let's look at this year's amount. The Department of Revenue announced that the 2026 PFD is $1,000, plus an energy assistance payment of $200, totaling $1,200 per person.

Those who chose direct deposit for electronic applications received their funds on October 1. Those who opted for paper applications or checks will receive theirs on October 22 during the second payment.

If you answered yes to the Alaska 529 question on your application, then it's already taken care of. Fifty percent of the approved dividend will automatically transfer to your 529 account.

Did you forget to check that box on your application? Don't worry.

The money can be deposited directly into your child's 529 account by the parents. It's just a matter of the order of operations. If you don't have an account yet, you can open one in your child's name on the Alaska 529 website.

This is similar to when you receive New Year's money in Korea, and your mom says, "I'll hold onto it for you." The difference is that this time, it will genuinely grow in your child's name.

One thing to be cautious about is that if you check the 529 option without having an account set up in advance, a new account will be created automatically.

According to Alaska 529 guidelines, that account will go into the UA portfolio, and the applicant will be listed as both the account owner and beneficiary. If you applied in your child's name, it means another account will be created in your child's name.

This actually happened last year. Due to a change in the record-keeping company, previous deposit designations were not transferred, and some families reported that unwanted new accounts were opened, as reported by the Anchorage Daily News.

Particularly, many households with existing accounts in a spouse's or another family member's name were affected. If the accounts split into two, managing them becomes quite cumbersome. Merging them later will require more paperwork.

So, if you have an existing account, it's a good idea to call Alaska 529 every year to specify which account you want to receive the funds. The number listed in the newspaper is 907-474-5671.

Speaking of which, I once had my bag go on a solo tour of Seattle because I mistakenly attached the wrong luggage tag at the airport. If you don't specify a destination, both money and bags can end up in the wrong place. My bag returned after three days, but money doesn't come back that easily.

Now, let's move on to next year's information.

The application period for the 2027 PFD is from January 1 to March 31. If you miss the deadline, you will be automatically disqualified, so this is no joke. The child's application must be submitted with a qualifying parent as a sponsor.

If you select yes for the 529 option on the application, half will go in. If you want to deposit the full amount, you need to enter the routing number and account number for the 529 account in the direct deposit information.

You must call 1-888-425-2752 to get that number before applying. You cannot just use your bank account number.

If you change your mind, you can make adjustments in myPFD until August 31. If the money has already been transferred, you must request a refund from the 529 side within 90 days.

There's also a bonus. If you deposit more than 50% of the dividend, you will automatically enter a drawing for a $25,000 scholarship account.

However, please note that money deposited with an online gift code is excluded from this drawing.

If you're opening a new account, you might want to check out Dash to Save. If you deposit more than $25 before the dividend arrives, you will receive an additional $250.

It's a deal where you pay $25 and get $250. You won't see such dividends even in a game of Yutnori at the senior center.

The scope of use has also expanded. Due to changes in federal law, starting in 2026, the limit for tax-free withdrawals from a 529 account for K-12 tuition will increase to $20,000 per year.

This means the money is no longer just for college. Families who are unsure if their child will attend private school now have options. The range of recognized expenses has also broadened to include tutoring and exam fees.

Since Alaska has no state income tax, don't expect state tax deduction benefits like in other states. Instead, the key point is that the money that grows can be used for educational expenses without incurring federal taxes.

Of course, every household's situation is different. Some may urgently need to cover winter heating costs, and I don't blame them for that. The parts related to taxes or financial aid vary by individual circumstances, so it's advisable to check with a professional.

Still, if it were me, I would do this. I would put half of the $1,200 child share into the 529 and decide how to use the other half with my child.

Even saving half each year adds up over eighteen years. Just like catching one salmon at a time fills the freezer.

October is short. Make that call to specify your account today.