Transfer 529 Funds to ABLE Account
Updated: Dec 17, 2018
The new federal tax law brought several enhancements to ABLE programs in 2018. One of the enhancements allows families who have a 529 college savings plan to transfer funds to an ABLEnow account without incurring any tax or penalty.
The rollover can be in amounts up to the annual ABLE contribution limit. Annual contributions to an ABLE account are currently capped at $15,000. The 529 account and ABLEnow account must have the same beneficiary or be a qualifying member of the beneficiary’s family.
Here is how to transfer 529 funds to an ABLEnow account:
Open your ABLEnow account here.
Complete the Incoming Program-to-Program Transfer request form and send it to your current 529 program.
If you have already closed your 529 account and received the funds from it, you may be eligible to deposit these funds into an ABLEnow account if it is within 60 days of the withdrawal. You can do so by completing the ABLEnow Contribution Form.