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#24335 - 10/22/03 01:53 AM Rollover 401K or Pension into 529?
geforce Offline
Junior Member

Registered: 10/22/03
Posts: 2
My wife just recently left her job to have a baby. She has both a 401K plan and a Pension plan. Q: Can we roll over either plan (either in full or in part) to a 529 plan for our child's college? Thanks.

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#24336 - 10/22/03 10:03 AM Re: Rollover 401K or Pension into 529?
bwilk Offline
Member

Registered: 05/14/01
Posts: 3345
Loc: AZ
Again, all contributions to 529s must be in after tax cash. There is no way to directly roll a tax deductible plan like a 401k into a 529. You would have to pay taxes and the 10% penalty on the funds prior to funding the 529. In almost every case this is a bad idea.

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