Can I roll over money from an UGMA/UTMA account or Coverdell Education Savings Account into a 529 account?
UGMA/UTMA: You may use money from a Uniform Gifts/Transfers to Minors Account (UGMA/UTMA) to open a 529 account. The liquidation of assets currently held in the UGMA/UTMA account would generally be a taxable event.1 Note that you need to designate that the account is a custodial UGMA/UTMA account on the account application when you open the 529 plan account. UGMA/UTMA custodial accounts are subject to additional requirements and restrictions. You should contact a tax professional to determine how to transfer an existing UGMA/UTMA account and what the implications of such a transfer may be. Coverdell ESA: You can contribute to a 529 plan with proceeds from the sale of assets held in a Coverdell Education Savings Account. When you move money from a Coverdell account to a 529 account, you have to complete the transfer within the same calendar year to avoid a tax consequence.
