IRA to 529 plan

Submitted by Zachariah Hammel on Mon, 2018-10-29 22:44

I have a grandmother who wants to use her IRA for her grandson and add it towards his 529 plan, is this possible and what steps are required?

Thanks



Submitted by Alan - IRA critic on Mon, 2018-10-29 23:09

She cannot transfer the IRA to the 529. If she wants to fund a contribution she would have to take a taxable distribution from the IRA and make a cash distribution to the 529 subject to the gift tax rules.

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