Rollover Other 529 Contributions into the Plan with Ease
You can Rollover: A tax-free reinvestment from one qualified 529 Plan to another within a specific time frame. The time frame for a qualified rollover is usually 60 days provided that no other rollovers have occurred with respect to the Beneficiary within the prior 12 months. Please refer to the Plan Description for details regarding rolling into or out of the Plan. other 529 or Coverdell Education Savings Account (CESA or ESA): A trust or custodial account in which contributions grow on a tax-deferred basis and withdrawals are tax free if used to pay for a broad range of educational expenses, including private high school tuition. Unlike 529 plans, ESAs have annual contribution limits and income restrictions. assets you have into a Texas Tuition Promise Fund account.
Rollovers from Texas Tuition Promise Fund to Another 529 Plan
You can transfer (or rollover) the Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. of unused tuition units to a 529 college savings plan, such as another state’s 529 plan or the Texas College Savings Plan ®. Money in your Texas College Savings Plan account can be used for:
- Undergraduate and graduate school
- Books, supplies and equipment required for attendance
- Certain room and board expenses
- Registered apprenticeship programs
- K-12 tuition
- Student loan repayment
- Certain special needs services
Recent tax reform legislation changes allowing for payment of K-12 tuition were on a federal level, and the tax consequences of using 529 plans for elementary or secondary education tuition expenses will vary depending on state law and may include recapture of tax deductions received from the original state as well as penalties. The account owner should consult with a tax or legal advisor before using the plan for K-12 tuition.
See IRS Publication 970 for certain limits that may apply.
Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. (Transfer Outside of Plan) is limited to the lesser of (1) the costs the Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. would cover at a public in-state college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
Questions? Please call us at 1.800.445.GRAD (4723), option # 5.