529 Transfer to Roth IRA Wit Change of 529 Custodian
An 81-year-old client has a 529 plan for his grandchild for over 15 years. If the client wants to change the 529 ownership to his son while leaving the grandchild as beneficiary, will the change of ownership restart the 15-year clock to transfer the funds to a Roth for the grandchild? What if the client wants to transfer the 529 plan from one state 529 plan to another 529 plan while keeping the same beneficiary but changing the ownership to the son…will that also restart the 15-year clock?
Thank you!
Permalink Submitted by Alan - IRA critic on Mon, 2024-01-08 17:01
The IRS will have to provide guidance on several provisions of this legislation including changes of beneficiaries and owners of the 529. Thus far, no such guidance has been published. Likewise, states rules vary and for states that allowed deductions for 529 contributions, there could be complications.