Secure act 2.0 529 account maintenance requirement
Hi – For a 529 to rIRA beneficiary transfer the act states that the qualified tuition program must have been maintained for 15 years. Would a tuition program that is established and funded in state A 15 years ago and then transferred to state B (with the beneficiary staying the same) be considered “maintained” for the required 15 year period? I would assume that my situation, where I transferred the 529 after I moved to another state, is not that unusual. Hopefully this account transfer would not restart the clock. Thanks for your opinion in advance.
Permalink Submitted by Alan - IRA critic on Fri, 2023-01-20 15:23
The IRS will have to clarify this and several other issues regarding Sec 126 of Secure 2.0, including changing beneficiaries. Reporting requirements for 529 plan and Roth IRA sponsors will have to be determined and supported by these plans. Another issue is pre paid tuition programs under Sec 529. A transfer between state plans will probably be OK, but that’s just my guess. Hopefully, all these questions will be resolved by the start of 2024, but the IRS will be addressing the Sections that are effective this year first.