529 rollover to family member of beneficiary - twelve month rule

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529 rollover to family member of beneficiary - twelve month rule

Post by yogesh » Sun Apr 15, 2018 9:35 pm

I wasn't aware of new laws in allowing 529 qualified withdrawal for K12 tuition. Unfortunately I put myself in situation where I did withdraw 529 plan for Kid1 given I opted for GET prepaid tuition units last month. Now I am reading IRS rules on my options to handle the CG tax and penalty. I thoroughly read IRS p970 publication and bogleheads wiki before calling Fidelity reps.

Fidelity rep insists that I can't do rollover to another beneficiary. It seems its a two step process of first rolling over to same beneficiary on another 529 plan and then changing name of beneficiary.

My question is if the following statements on wiki are true? If yes, where I can find it in p970 to refute Fidelity claims.
https://www.bogleheads.org/wiki/529_pla ... _transfers
You are allowed to rollover one 529 plan into another 529 plan.
If a rollover conforms to the following conditions you will pay no tax on the transfer:
You are allowed only one rollover to another 529 plan per twelve month period for the same beneficiary.
You are allowed to rollover a 529 plan to a family member of the beneficiary.
There is no restriction on the number of times this can occur per twelve month period.

The rollover must occur within 60 days of the distribution for the distribution to not be considered a taxable distribution.
Emergency: FDIC | Taxable: VT | Retirement: TR2040

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