Convert 529 to IRA?
After saving a lot in Colorado 529 plans for my 2 daughters, one has decided to pass on college and the other has a full ride (completely!) scholarship. If neither of them use the 529 money can I convert it to IRA or withdraw under IRA rules in the future?
I am 50 now and there is no rush on making a move.
Permalink Submitted by Alan - IRA critic on Sat, 2013-06-29 17:31
You cannot roll these plans into an IRA. The 529 plans can only be distributed with taxable earnings and 10% penalty. However, the plan for the daughter with the tax free scholarship can be distributed with tax but NO penalty. You can also change the beneficiary to a member of the daughter’s family and that would also include yourself.
Permalink Submitted by William Zeidenberg on Sun, 2013-06-30 15:41
Save it for grandkids. Presently it is out of your estate, why not keep it that way.
Permalink Submitted by Richard Shakar on Thu, 2023-06-29 16:25
Ed: I opened plan in New York State, but it is a Virgina state plan, I live in NC. Which state laws apply? Never taken a deduction for contributions. Is $10000 limit federal only or state as well?
Permalink Submitted by William Tuttle on Fri, 2023-06-30 02:50
This is a 10 year old zombie thread. Not to mention your question are totally unrelated to the original post (OP).