529 Account change
If a client has a 529 account that was recently moved into his name as the owner (Anthony XXX for the benefit of Anthony XXX) due to the passing of the original owner (his grandfather) Anthony is now of age so it was moved into his name. So, we are not sure if he is eligible to covert to a Roth IRA since it was moved. A new account number was created.
Permalink Submitted by Alan - IRA critic on Wed, 2024-08-21 19:02
The holding periods are based on the beneficiary, not the owner. Since the beneficiary has not changed, this should not be an issue, however the change of account could be. The IRS has not yet issued guidance on changes of accounts or beneficiaries with respect to either the 15 year or 5 year requirements.