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  • 529 allocation question

    I live in NH but have significant income from VT, so I plan to put $ into the VT 529 to get the credit. Married filing jointly, I might try to put in $5000/child/year, for 3 children, for a total credit of $500 x 3 = $1500. So far so good.

    Any reason I can't then take the money from my VT 529 and put it into another one I prefer, like NY state's?

    Do I have to wait till year X+1 to move the money contributed in year X, or can I move the money immediately? Can't find an answer to that on the Vermont 529's website.

     

     

  • #2




    I live in NH but have significant income from VT, so I plan to put $ into the VT 529 to get the credit. Married filing jointly, I might try to put in $5000/child/year, for 3 children, for a total credit of $500 x 3 = $1500. So far so good.

    Any reason I can’t then take the money from my VT 529 and put it into another one I prefer, like NY state’s?

    Do I have to wait till year X+1 to move the money contributed in year X, or can I move the money immediately? Can’t find an answer to that on the Vermont 529’s website.

     

     
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    I looked on VT's website and on the savingforcollege.com website and could not find the answer, either. I found this on the VT Dept of Taxes site: For more information on the Vermont Higher Education Investment plan, visit the VSAC website at www.vsac.org, call 800-637-5860 Monday through Friday, 8:00 a.m. to 7:00 p.m., or email [email protected] Technical Bulletin 66 is the only Q&A reference that even comes close to your question, but a skim did not give me the answer.

    I don't guess you have anything to lose by trying. At worst, you'll pay the credit back, right?
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      You can do this in most states, but there are some exceptions. I can't recall what they are. Vermont could be one I suppose.

      But this is cool- even rollovers into Vermont's plan count for the credit as long as you leave it there one year (so be sure to leave your contributions for at least one year before rolling them out.) Maybe you could roll the same $5K in and out over and over again and get the same credit every year. I'm sure they don't allow that technically, but money is fungible.
      Helping those who wear the white coat get a fair shake on Wall Street since 2011

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      • #4
        Thank you!

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