Home  >  Financial Articles and Q&A  >  Can I transfer my childs 529 plan to another state?

Can I transfer my childs 529 plan to another state?

A plan offered in Nevada has lower cost MFs and I'm currently in Alabama.

Feb 17, 2012 by Hannah from Montgomery, AL in  |  Flag
2 Answers  |  3 Followers
Follow Question
2 votes

Yes. Tax law allows you to transfer one plan to another plan without tax consequences. However, you can only do this once in any 12 month period. Transferring to lower cost plans and funds is a good reason. Work with your current plan to effect the transfer directly to the new plan.

Comment   |  Flag   |  Feb 17, 2012 from San Diego, CA

1|600 characters needed characters left
0 votes

Another consideration is whether your state allows a state tax deduction for contributions. Consider two scenarios: 1) If your state allows deduction and your accounts are currently held with home state, be aware the state may reclaim past deduction (read plan docs) 2) If your state allows deduction and your accounts are held in different state, consider transferring over enough each year to maximize your state tax deduction, unless the fees and/or investment choices outweigh the state tax deduction benefit

Comment   |  Flag   |  Sep 05, 2012 from Western Springs, IL

1|600 characters needed characters left