Ask Terry Questions Transferring 529 funds to another 529. Must they be ‘like’ to ‘like’?

Transferring 529 funds to another 529. Must they be ‘like’ to ‘like’?

By Terry Savage on May 31, 2015 | College Savings / Student Loans

Can I transfer the funds from one 529 to another?
Specifically, I have some funds (unhappily) in the Montana Family Education Savings Investment Program. They put the funds into long term CD’s with the lowest interest rates in the universe.
I want to transfer those funds to Illinois Bright Start or Utah Educational Savings 529, which are more diversified.
What are the rules for transferring between 529’s?

Thank you.


Terry Says:  The answer from Joe Hurley at is this:
Same-beneficiary rollover
Generally speaking, a withdrawal from a 529 plan is a tax-free rollover as long as the funds are transferred within 60 days to another 529 plan for the same beneficiary. (To simplify the process, most 529 plans will offer a direct “trustee-to-trustee” transfer.) However, rollover treatment is denied if the transfer occurs within 12 months from the date of a previous rollover for the same beneficiary.

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