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How to roll over an old 529 to a new plan.
Stuck with a high-fee or under-performing 529? You can roll it over to a better plan once every 12 months without paying tax. Here's the step-by-step.
If your existing 529 has high fees, mediocre investment options, or just isn't keeping up with what's available today, the IRS lets you roll the entire balance to a new 529 plan tax-free — once every 12 months per beneficiary.
The three-step process
1. Open the new 529 first. Have the account number ready.
2. Initiate a 'direct rollover' from the old plan to the new — never withdraw to your bank account in between, which can trigger taxes if you miss the 60-day window.
3. Confirm receipt at the new plan and shut down the old account.