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Financial Planning / Tax Strategies
|Subject: Re: Rolling over Education IRA to 529?||Date: 5/11/2013 8:28 AM|
|Author: TMFPMarti||Number: 118603 of 122917|
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.
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