ABLEnow blog

How to Transfer 529 Funds to ABLEnow

New legislation brought several enhancements to ABLE programs in 2018. One change 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. Both accounts must have the same beneficiary or be a qualifying member of the beneficiary’s family.

Here are instructions to transfer 529 funds to ABLEnow:

Alternatively, if you have already closed your 529 account and received the funds from your closed 529 account, you may be eligible to deposit these funds into an ABLEnow account within 60* days of the withdrawal by completing the ABLEnow Contribution Form.

*NoteUnder temporary guidance from the U.S. Internal Revenue Service (IRS), if the 60-day period ends on or after April 1, 2020 and before July 15, 2020, then the rollover can be completed any time before the later of July 15, 2020 or the 60th day after the date of the distribution. 

Please contact ABLEnow Customer Service or your tax professional for assistance.

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