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#30565 - 11/11/05 01:26 PM can I change the owner of a 529 plan
xanuda Offline
Member

Registered: 10/30/00
Posts: 605
Hi all.

Is it possible to change the owner of an existing 529 plan while keeping the same benficiary? Say from husband to wife?

thanks

X

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#30566 - 11/11/05 01:41 PM Re: can I change the owner of a 529 plan
cgorab Offline
Member

Registered: 09/15/04
Posts: 289
Loc: New York, NY, USA
You can change the account owner whenever you want. There appear to be no gift/income tax ramifications, but the IRS has yet to make this clear.

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#30567 - 11/12/05 02:44 PM Re: can I change the owner of a 529 plan
ParrRemedy Offline
Member

Registered: 04/26/05
Posts: 1163
State plan rules may vary--some say you need to die or be handicapped to change--others make it as easy as falling off a log.

Since the IRC views a 529 as a complete gift to the beneficiary then to me its an oxymoron to consider the change of ownership as any economic change at the ownership level --buthten again common sense is not required on Code issues..

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#30568 - 11/12/05 09:06 PM Re: can I change the owner of a 529 plan
rsinj Offline
Member

Registered: 11/16/03
Posts: 1160
If you are doing a change of beneficiary between husband and wife, there should never be any issue (regardless of IRS changes going forward) because of unlimited gifting between them.


 Quote:
Since the IRC views a 529 as a complete gift to the beneficiary then to me its an oxymoron to consider the change of ownership as any economic change at the ownership level --buthten again common sense is not required on Code issues.


The new beneficiary could simply decide to take all of the funds out of the 529 if desired and pay penalty and tax on the earnings - possibly getting around gift taxes and the beneficiary would never see a penny of it. So much for the completed gift to the beneficiary.

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#30569 - 11/13/05 07:52 AM Re: can I change the owner of a 529 plan
anonymous Offline
Member

Registered: 03/29/05
Posts: 2109
rsinj,

Of course, you meant new owner and not new beneficiary. No one said that 529 rules make any logical sense!

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#30570 - 11/13/05 09:13 AM Re: can I change the owner of a 529 plan
xanuda Offline
Member

Registered: 10/30/00
Posts: 605
thanks,everyone!

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