Rollover Or Transfer?

[ReachELS]

I have searched the existing topics but not found an exact discussion on my topic...

I have VA 529 accounts established with my grandkids (ages 5 & 1) as beneficiaries. My son also has 529 accounts with the grandkids as beneficiaries.

As part of our annual gifting program, I wish to do an annual "transfer or rollover" from my account to my son's account; so, it is a change in ownership but not of beneficiaries.

My question is whether this transaction is a "transfer" or a "rollover" (subject to the once per twelve month limitation).

I suspect that I did not set all of this up in the most efficient manner.

[dcandmc]

To be clear: you want to do something other than simply changing the account owner from you to your son on your present VA 529 accounts?

[ReachELS]

No - actually, all I want to do is change the account owner. Both accounts have the same beneficiary and are both 529s in Virginia.

[ReachELS]

Actually, I want to move money from my account (with Grandson as beneficiary) to son's account (with same grandson as beneficiary). I want to retain my separate account.

[dcandmc]

Ok, two distinctly different answers to the same question. Look to the end of Chapter 7 of IRS Pub 970 to learn about 529 account transfers and rollovers. Basically, a 529 rollover is a type of transfer.

https://www.irs.gov/pub/irs-pdf/p970.pdf