Transfer Coverdell IRA to 529
We have a client who would like to transfer her child’s Coverdell IRA to a 529 account at another custodian. Would this create a taxable event, or would this transfer be considered a qualified distribution? Are there any other tax or ownership details that need to be taken into consideration with this type of transfer?
Permalink Submitted by Denise Appleby on Fri, 2008-12-05 05:57
[quote=”afinn”]We have a client who would like to transfer her child’s Coverdell IRA to a 529 account at another custodian. Would this create a taxable event, or would this transfer be considered a qualified distribution? Are there any other tax or ownership details that need to be taken into consideration with this type of transfer?[/quote]
It’s reportable, but not taxable. See http://www.irs.gov/pub/irs-pdf/i1099q.pdf