Can I transfer my existing Coverdell education savings accounts and U.S. savings bonds into a 529 plan?
Yes, you can accomplish these transfers without triggering tax, but you should be careful about ownership issues. For instance, the Coverdell ESA (formerly the Education IRA) is effectively owned by your child and so it may not be proper to transfer the funds into a 529 account that is owned by you. Also, for 529 distributions after the 2010 “sunset” the untaxed earnings transferred into the 529 plan will be subject to tax when withdrawn from the 529 plan. Also note that the tax-free transfer of U.S.
