Message Font: Serif | Sans-Serif
No. of Recommendations: 2
I am seriously considering transferring a Coverdell ESA from a brokerage firm directly to a mutual fund. Is there any problem with closing the account, having them send the proceeds to me and then using that to open the new account?

Last time I had to transfer assets away from an account they hit me for transfer fees.

Coverdell ESA's appear to have the same rollover rules as IRAs. You are allowed one rollover per 12 months where you take possession of the funds. The rollover must be completed within 60 days, otherwise it is considered a taxable distribution (and penalties may apply).


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.