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Can I convert a Coverdell Education Savings Account (formerly the Education IRA) into a College Savings Program?

April 26, 2017College Savings convert Coverdell Education IRA program savings account

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Can I convert a Coverdell Education Savings Account (formerly the Education IRA) into a College Savings Program?

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Yes. A qualified withdrawal may be taken from a Coverdell Education Savings Account (tax-free) if the money is then placed into a 529 Plan for the same beneficiary. There is no penalty for this liquidation as long as the assets are placed into a College Savings Program.