IRA to 529 Plan
I had a client ask me if she could convert a small IRA that she has into a 529 plan for a grandchild. I didn’t think there was a way to do that – short of taking a taxable distribution and then funding a 529 plan – but I figured that if anyone knew of a way to do something different, it would be one of the tax pros on this forum.
Anyone know of a way that I’m overlooking?
Permalink Submitted by Alan - IRA critic on Thu, 2016-01-28 21:32
It cannot be done. There is no portability option between an IRA and a 529 plan. She would have to take a taxable IRA distribution, then use the proceeds to fund a regular contribution to the 529.