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Can a Coverdell Education Savings Account (formerly the Education IRA) be converted into a 529 account?

April 26, 2017account converted Coverdell Education IRA savings account

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Can a Coverdell Education Savings Account (formerly the Education IRA) be converted into a 529 account?

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Yes. A qualified withdrawal may be taken from an ESA (tax-free) if the money is then placed into a 529 account for the same beneficiary. There is no penalty for this liquidation as long as the assets are placed into a 529 account.