Rollovers

You can roll over funds for the same beneficiary only once per 12 consecutive month period. If you change the beneficiary to a family member of the current beneficiary, however, there is no limit on how often you can roll over an account.

You can roll over funds from your existing 529 account into a PA 529 plan by first opening a PA 529 account and completing the Incoming Rollover Form for the appropriate Pennsylvania plan. PA 529 will then request the funds from the other program. If you have already closed your other account, you can send the proceeds from the rollover with a copy of your Enrollment Form and a breakdown of the principal and earnings of the rollover.

A rollover from a non-PA 529 account to a PA 529 account, if done within the rules and received by PA 529 within 60 days of the withdrawal, will not be taxed by Pennsylvania or the federal government at the time of the rollover. When the account is used, the normal rules governing withdrawals would apply. You should check with your other plan to see if they charge any penalties for rolling funds out of their account to another 529 plan. For out-of-state residents and for people who have previously completed rollovers for the same beneficiary, you should check with your tax advisor for additional considerations. Additionally, an amount rolled over from another 529 plan cannot be deducted from taxable income for Pennsylvania taxpayers, as most other contributions can be.

You can roll over funds from an existing UTMA/UGMA account into an existing PA 529 account, but it is important to note that the PA 529 account will then have the additional restrictions applicable to the UTMA/UGMA account. Another alternative is to open a second PA 529 account exclusively for the UTMA/UGMA rollover. By keeping UTMA/UGMA and other contributions in separate accounts, the restrictions on UTMA/UGMA would not apply to funds in the non-UTMA/UGMA 529 account. You should review the appropriate disclosure statement as it relates to UTMA/UGMA accounts before making this transaction.

Yes. Account owners can roll over 529 college savings accounts to ABLE plans, up to the ABLE annual contribution limit (currently $20,000). Please note that you may process a rollover from a 529 college savings account into a PA ABLE account owned by you or a member of your family (as defined in the PA 529 GSP and PA 529 IP disclosure statements). Additionally, in order for the rollover to be protected from federal and state taxes, we must receive the funds within 60 days of the withdrawal.

In order to roll savings bonds into a 529 plan as a tax-deferred event, for federal tax purposes, the bonds have to meet the following requirements:

Must be a Series EE bond issued after 1989 or a Series I bond.

The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners). If the bond is for a child, the child may not be listed as the owner or co-owner – they can be the beneficiary of the bond.

The owner must be 24 years old before the bond's issue date.

The bonds must be used for the owner, the spouse of the owner, or a dependent for whom you can claim an income tax exemption on your federal return. If the grandparent is the owner, they will not qualify unless they can claim the beneficiary.

If married, you must file a joint tax return.

You must meet current income requirements as defined in IRS Publication 970 (Tax Benefits for Education).

If all of the requirements above are met, you must do the following to roll your savings bond into your PA 529 account:

Record the serial number, issue date, face value and total redemption proceeds (principal and earnings). You'll need this information for your IRS Form 8818.

Cash your bond at any bank or financial institution.

Make the payment to your PA 529 account and send it to the plan with a letter stating it is for a Savings Bond rollover. Include a statement or Form 1099-INT from the bank/institution to show the principal and earnings.

For current income limitations and additional information on the Education Savings Bond Program please review IRS Publication 970 (Tax Benefits for Education).

Yes, PA 529 Account Owners are permitted to transfer funds via direct rollover from a PA 529 GSP or PA 529 IP account into a Roth Individual Retirement Account (Roth IRA) without incurring federal income tax or penalties. Additionally, rollovers from a PA 529 GSP or IP account made after July 10, 2024, are not subject to Pennsylvania state income tax. Details about 529 to Roth IRA rollovers are available here .

To initiate a PA 529 to Roth IRA rollover, Account Owners must use the Direct 529 to Roth IRA Rollover Form which are available on our forms page .