Guest Ray Rinfret Posted March 1, 2002 Posted March 1, 2002 When rolling over ESOP distributions to an IRA, can a portion of the IRA be allocated to a Section 529 plan (NY) without any taxes and/or penalties being levied? If so, what basis is picked up for transfer to the 529 plan?
mbozek Posted March 1, 2002 Posted March 1, 2002 529 plans are state plans that allow individuals to put after tax amounts into a fund to pay for college eduction in a particular state. The funds are not subject to the federal gift tax. But the contributions are made on an after tax basis of as much as $11,000 a year. The only advantage is a state tax deduction. NY's 529 plan is managed by TIAA-CREF. who you can call for further information. mjb
Guest Harry O Posted March 1, 2002 Posted March 1, 2002 . . . and additional tax advantages are tax-free growth and tax-free distributions for qualified educational expenses. The answer is "no", you can't make a tax-free transfer from an IRA to a section 529 plan.
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