FOR PROFESSIONALS
Income tax center
Can I transfer the ownership of my account to someone else?
[Excerpts from Chapter 3 of The Best Way to Save for College – A Complete Guide to 529 Plans (2015-16 Edition)]
Nothing within Section 529 prohibits or regulates a transfer of account ownership. It is up to the individual 529 plan to provide rules concerning transfer of account ownership. Some programs will accommodate a request to transfer account ownership while others expressly prohibit such transfers prior to the owner’s death or legal incapacity. The mere transfer of ownership appears to have no federal income, gift, or estate tax consequences. However, a new account owner will generally have all rights associated with original ownership including the power to revoke the account.
Next: Where do I show the beneficiary's qualified higher education expenses to the IRS?
- What are the federal income tax rules for 529 plan participants?
- How does the 529 plan administrator calculate the earnings portion of a distribution?
- Who reports any taxable earnings, the account owner or the beneficiary?
- What about state taxes?
- What are adjusted qualified higher education expenses?
- Can I claim the American Opportunity or Lifetime Learning credit in the same year that I withdraw from my 529 account to pay for college?
- How about the above-the-line deduction for qualified tuition and related expenses?
Can I claim the deduction for expenses I pay using funds from my 529 account? - Can I change the beneficiary of my 529 account?
- Can I transfer my account from one state’s 529 plan to another state’s 529 plan?
- Can I transfer the ownership of my account to someone else?
- Where do I show the beneficiary's qualified higher education expenses to the IRS?
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Ameriprise Financial instructions
Consult with your office/branch manager for instructions.
Commonwealth Financial instructions
Commonwealth Financial Advisors, you will find your Savingsforcollege.com portal on CommunityLink in the Financial Planning Playbook under Education Planning Tools.
LPL Financial instructions
Visit the Education Planning page in the LPL BranchNet Resource Center to access your Savingforcollege.com portal.
Morgan Stanley instructions
Visit Tools and Forms in the Education Savings Products page in 3DResources to access your Savingforcollege.com portal.
Raymond James instructions
Visit the 529 Plan Resource Center on RJ Net to access your Savingforcollege.com portal.
RW Baird instructions
Visit the 529 Department page on BairdWeb to access your Savingforcollege.com portal.
