The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Rolling over Education IRA to 529?||Date: 5/11/2013 8:28 AM|
|Author: TMFPMarti||Number: 118603 of 121585|
From the reading I've done online and in reading Pub 970, I thought the answer was 'Yes'.
Thanks for the catch.
You are correct where it matters. The key is that a contribution to a 529 with the same beneficiary as the Coverdell is considered a qualified education expense when determining the taxable portion of a Coverdell distribution. It's not a "rollover," but actually that's a plus since you're not limited by the 60 day rule. You just have to make the contribution in the same year as you took the distribution.
Rule Your Retirement Home Fool
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|