FOR PROFESSIONALS
Income tax center
Can I transfer my account from one state's 529 plan to another state's 529 plan?
[Excerpts from Chapter 3 of The Best Way to Save for College – A Complete Guide to 529 Plans (2015-16 Edition)]
Yes, a qualifying rollover is not treated as a distribution for federal income tax. A transfer of assets from one state’s plan to another for the same beneficiary is a qualifying rollover, but this type of rollover can be done only once every 12 months. There is no limit on the frequency of rollovers where the beneficiary is replaced with a qualifying member of the family. A rollover can be transacted either through a direct "trustee-to-trustee" transfer (program permitting), or by a withdrawal of funds followed by the contribution of equivalent funds within 60 days to a different 529 plan. Be sure to find out how the 529 plan you are investigating handles rollover requests, as there may be restrictions imposed by the program. Many prepaid programs will treat such a request as a cancellation of the contract.
Next: Can I transfer the ownership of my account to someone else?
- 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.
