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Financial Planning / Tax Strategies
|Subject: Re: Rolling over Education IRA to 529?||Date: 5/11/2013 8:45 AM|
|Author: TMFPMarti||Number: 118604 of 121805|
2. If so, how does the tax consequences plays in the picture? I have stocks in the E-IRA which I do not want to sell for the proceeds (What I would like to do is transfer that stock in my brokerage account and transfer the proceeds from there - as in I want to to in-kind transfer and then roll-over). Can this be done? Or is it wishful thinking?
Make sure that you read all the posts in this thread. My first answer to your first question was wrong. But keep in mind that you're not doing a rollover. You're taking a distribution from the Coverdell and making a contribution to the 529.
Moving on to #2, I'm not sure what it is you're trying to do. If you're trying to move the stock from the Coverdell to the 529, no. All contributions must be cash.
If you're trying to move the stock from the Coverdell to your personal brokerage account, no problem from a tax perspective. You just contribute cash equal to the value of the stock to the 529. In short, if you contribute to the 529 an amount equal to the total distribution from the Coverdell, there is no tax effect.
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