Welcome Guest. Register Now!  



 
 
LinkBack Thread Tools Search this Thread Display Modes
Prev Previous Post   Next Post Next
  #1 (permalink)  
Old 01-24-2018, 07:04 PM
Junior Member
 
Join Date: Jun 2011
Posts: 1
Moving funds from 529 to FL prepaid

I'm interested in switching my kids 529 plans to a FL prepaid plan. However Florida pre-paid will not accept a direct rollover. So I'm told I'll have to withdraw the funds then pay the prepaid plan. I understand this may have tax consequences and a 10% penalty to withdraw funds. I also read that withdraws that are placed in another qualified plan within 60 days would not be subject to income tax on any gain.

I have two 529 accounts, One has $5500 in it, the other $55,000 in it (one for each child). I want to purchase two Prepaid plans (right now the cost would be just about identical to what I have in the 2- 529 accounts. So I would be using all the withdrawn $ on another qualified plan.

1. If I use all the funds on another qualified plan within the 60 days- would I owe any income tax on this $$?
2. Would I owe the penalty of 10% if all is going to another qualified plan without it being a trustee to trustee transfer?

Thanks for any feedback!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
 


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
IR Funds to HSA zexx IRA/Sep 1 03-12-2015 10:29 PM
Unclaimed Funds creepingflox Income 1 02-16-2015 05:29 PM
Oversea funds Traveler Miscellaneous 1 04-24-2011 04:48 PM
What are the various types of Trusts Funds? TaxGuru Estate Planning 0 07-13-2009 05:16 PM
Moving Soon? Let the IRS Know Samatg General 0 01-23-2007 07:57 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning