Good morning seshandri:
It does not matter if your daughter is a dependent, you can still claim a tax benefit for contributions to a Pennsylvania plan account as a resident.
However, you do mention you want to transfer your funds to a sibling. The tax deduction for PA is per beneficiary, so if you are trying to claim a deduction for both children and use them for one child, there may be tax consequences. In this case you might want to seek a professional tax advisor in PA.
VP, Research & Development
This information does not constitute tax advice and is provided for informational purposes only. Please consult your tax advisor, financial advisor, local taxing authority, and/or plan provider or sponsor for more information.