Section 529 Plan Transfer Rules

Can i transfer between multiple 529 accounts or into another state s 529 plan.

Section 529 plan transfer rules.

The 2017 tax cuts and jobs act expanded the guidelines for 529 plans allowing parents to withdraw up to 10 000 per year from these plans for private or religious elementary and secondary education expenses. A 529 college savings plan can be a big help in preparing for those costs. Few things excite parents relatives financial planners and college bound students like the availability of section 529 college savings plans while these accounts do not make money for college expenses magically appear you still need to save funds diligently over a long period of time they do make the management of that money easier and more effective while providing a few tax benefits. Section 529 c 3 d added to the code by the protecting americans from tax hikes act of 2015 path act part of the consolidated appropriations act 2016 pub.

If the beneficiary recontributes the refund to any of his or her 529 plans within 60 days the refund is tax free. Same rule to a direct transfer i e a trustee to trustee transfer from a qtp to another qtp. An accelerated transfer to a 529 plan for a given beneficiary of 75 000 or 150 000 combined for spouses who gift split will not result in federal transfer tax or use of any portion of the applicable federal transfer tax exemption and or credit amounts if no further annual exclusion gifts and or generation skipping transfers to the same. This can occur when a student drops a class mid semester.