Have a Tax Question? Ask a Tax Expert
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.The money you contribute to these plans grows tax-deferred, and when the student (beneficiary) is ready for college, withdrawals for qualified college expenses are exempt from federal income tax. But transfering funds to the college fund would not be the same as making a donation or rolling over to an elligible plan.
The transfer would be a distribution and you would be taxed on the amount unfortunately.
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No thank you