It’s easy to roll over money into my529 from another 529 plan (or vice versa).
- Internal Revenue Service (IRS) rules allow funds to be rolled over from one state’s 529 plan to another state’s 529 plan once every 12 months for the same beneficiary.
- Alternatively, you can roll over funds between 529 plans any time for a different beneficiary as long as that beneficiary is a member of the previous beneficiary’s family.
- Funds must be placed into a different 529 plan within 60 calendar days to be considered a qualified rollover, according to IRS rules.
- These considerations also apply to a rollover from or to a Coverdell Education Savings Account (ESA).
- Tax consequences may ensue. See below.
How to roll over funds to my529 from another 529 plan
- Open a my529 account.
- Liquidate your account with the other 529 plan.
- If the other 529 plan allows it, you can request my529 to initiate the rollover by submitting the Incoming Direct Rollover form (Form 210).
- Alternatively, use the Liquidated Funds Transfer form (Form 215).
- Be sure to submit the balance within 60 days to my529.
A Utah taxpayer who rolls over funds from another state’s 529 plan is eligible for Utah state income tax benefits. See Tax Advantages.
A rollover to my529 from another state’s 529 plan must include documentation showing the portion that is principal and the portion that is earnings, if any. A rollover that does not include this documentation must be considered 100 percent earnings, according to federal law.
Non-Utah taxpayers and residents should determine (1) whether the state where they or their beneficiary pay taxes offers a 529 plan that provides tax benefits not available by investing in my529, and (2) the consequences of rolling funds over from that state’s 529 plan to my529.
How to roll over funds from my529 to another 529 plan
- Submit a Withdrawal Request form (Form 300) to my529.
- Alternatively, instruct the other 529 plan to submit a withdrawal or rollover request form to my529.
- Any request must be dated and signed. It must include the amount to be rolled over, to whom the check should be payable, and where the check should be sent.
- The my529 account will be closed if the entire account balance is rolled over.
- my529 requires a stamped or typed signature guarantee from a financial institution if an outgoing rollover request
- is for $50,000 or more
- is made in combination with withdrawal requests totaling $50,000 or more for the same beneficiary within a 90-day period
- is made within 10 days of an account owner change
- includes a signature on form 300 that does not match the account owner’s signature on file
A Utah taxpayer who rolls over funds from my529 to another state’s 529 plan must repay all Utah state income tax credits or deductions he or she may have claimed previously.
A Utah taxpayer who rolls over funds to another state’s 529 plan is no longer eligible for Utah state income tax benefits.