Transferring 529 funds to another 529. Must they be ‘like’ to ‘like’?
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 www.savingforcollege.com 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.
Here’s the link for more from the same article: http://www.savingforcollege.com/top-tip/guru.php?guru_id=17