Frosty wrote:

- quote -

AFAIK, you can rollover some of the funds from the existing
529 to a new 529 for the benefit of son A. See the QTP
(qualified tuition plan) section of Pub 970.

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"Mechanic" <bbs[at]mechanicsofmoney.com> wrote:

- quote -

I am not sure that a "competent financial advisor" could
have foreseen these events any better.

Rather, my view is that what we have here is yet another
example of why we shouldn't choose investments based
primarily on tax considerations.

-HW "Skip" Weldon
Columbia, SC

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Frosty wrote:

- quote -

Funds will only be tax free for withdrawls for qualified
costs of the beneficiary. Usually you can only change the
beneficiary of a 529 once per year (unless the 529 is owned
by a trust and the trust allows a different beneficiary).
Read the plan docs. This is yet another example of why
folks should hire competent financial advisors, so that
these blunders do not happen.

Best,

Gary
http://www.mechanicsofmoney.com
http://www.mechanicsofmoney.com/blog.php

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Son A has an unexpected and sudden need for an additional
$8000 in QHEE in 2006. There are enough funds in a 529 to
cover the expense, but the 529 has Son B as a beneficiary.

Must I: change beneficiary to Son A, make the distribution,
pay the tuition, change beneficiary back to Son B?

Or can I take an $8000 distribution from Son B's 529 and
show QHEE for Son A to the IRS to received tax-free benefit?

Thanks in advance!

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