Home Page link  

529 Plan Transfer of Ownership

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
529 Plan Transfer of Ownership jay1000 06-27-2007
Posted by jay1000 on June 27, 2007, 10:53 pm
Please log in for more thread options
 "From Commonwealth of Virginia 529 College Savings Plan
Program Description

Can I transfer ownership of the account?

Yes. Ownership of the account can be transferred by changing
the account owner. Written authorization is required from
the current account owner. To request an Account Owner Change
Form, please call our toll free number, 1-888-567-0540, or
download the form from our web site, www.Virginia529.com.
There may be tax consequences related to the transfer of a
VEST account, so please contact a tax professional to
determine the effect of an account transfer on your
individual situation."

My understanding is there are no tax consequences unless it
is an "abusive" transfer. Can anyone suggest the
circumstances under which there would be tax consequences?

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Ira Smilovitz on July 1, 2007, 6:06 pm
Please log in for more thread options
> "From Commonwealth of Virginia 529 College Savings Plan
> Program Description
>
> Can I transfer ownership of the account?
>
> Yes. Ownership of the account can be transferred by changing
> the account owner. Written authorization is required from
> the current account owner. To request an Account Owner Change
> Form, please call our toll free number, 1-888-567-0540, or
> download the form from our web site, www.Virginia529.com.
> There may be tax consequences related to the transfer of a
> VEST account, so please contact a tax professional to
> determine the effect of an account transfer on your
> individual situation."
>
> My understanding is there are no tax consequences unless it
> is an "abusive" transfer. Can anyone suggest the
> circumstances under which there would be tax consequences?

Wouldn't transfer of ownership be subject to gift tax
considerations?

Ira Smilovitz

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by joetaxpayer on July 1, 2007, 8:33 pm
Please log in for more thread options
Ira Smilovitz wrote:

>> "From Commonwealth of Virginia 529 College Savings Plan
>> Program Description
>>
>> Can I transfer ownership of the account?

> Wouldn't transfer of ownership be subject to gift tax
> considerations?

Agreed, but wouldn't this transfer be subject to the same 5
year rule (that you can gift up to 5 years' worth or $60K
and while you must file a gift tax form, there is no tax
due)?

JOE

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Stuart Bronstein on July 2, 2007, 1:42 pm
Please log in for more thread options
> Ira Smilovitz wrote:

>>> "From Commonwealth of Virginia 529 College Savings Plan
>>> Program Description
>>>
>>> Can I transfer ownership of the account?

>> Wouldn't transfer of ownership be subject to gift tax
>> considerations?

> Agreed, but wouldn't this transfer be subject to the same 5
> year rule (that you can gift up to 5 years' worth or $60K
> and while you must file a gift tax form, there is no tax
> due)?

There's no five year rule. There is a lifetime exclusion.
You can give up to a total of $1,000,000 that is supposed to
appear on gift tax returns before any tax is due.

Stu

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by joetaxpayer on July 3, 2007, 3:58 am
Please log in for more thread options
Stuart Bronstein wrote:
>> Ira Smilovitz wrote:

>>>> "From Commonwealth of Virginia 529 College Savings Plan
>>>> Program Description
>>>>
>>>> Can I transfer ownership of the account?

>>> Wouldn't transfer of ownership be subject to gift tax
>>> considerations?

>> Agreed, but wouldn't this transfer be subject to the same 5
>> year rule (that you can gift up to 5 years' worth or $60K
>> and while you must file a gift tax form, there is no tax
>> due)?

> There's no five year rule. There is a lifetime exclusion.
> You can give up to a total of $1,000,000 that is supposed to
> appear on gift tax returns before any tax is due.

A deposit to the 529 has a 5 year look ahead, so one can put
in $60 and not tap the $1M lifetime gifting credit. If you
are suggesting this is ignored for transfer of beneficiary,
that may be. But 529s have a five year rule. There seem to
be a number of specific details that are either unadressed
or not well publicized, I think this is one of them.

JOE

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>

Similar ThreadsPosted
Re: 529 Plan Transfer of Ownership July 1, 2007, 8:33 pm
Deferral Limits - participant in both SIMPLE plan and 403(b) plan December 16, 2006, 8:45 pm
529 ownership and withdrawals November 10, 2006, 2:02 am
life insurance ownership November 15, 2007, 3:01 pm
Depreciation of 1/3 ownership asset April 16, 2006, 2:29 am
Treasury Bonds Tuition & Ownership March 25, 2007, 12:01 pm
Section 351 or 354 transfer? to LLC / Partnership November 17, 2006, 1:39 am
Is the "NJ Realty Transfer Fee" deductible? March 3, 2007, 5:07 am
Family Business Transfer June 18, 2007, 9:27 am
Wire Transfer for home purchase April 24, 2008, 9:45 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap