Pension Rollover Question - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

02passat · #1 (**permalink**) 12-27-2007, 12:05 AM

I am leaving my company for another job, and am about to open a 529 for my son. Can I roll 100% of the pension funds into the 529 instead of my new 401k?

Hermes · #2 (**permalink**) 12-28-2007, 09:22 AM

Personally, I think that it would be a huge mistake to do so. I would reconsider that option.

I am not a big advocate of 401k plans (they are better then nothing) but before you put it into a 529 for college purposes I would recommend to leave it in your 401k.

How old is your son?

If he is young then you have plenty of time to safe up for his college education. I have heard that 529 plans are a complete waste of time and money but that is something that you may want to research before you take that step.

There are better options on the table to safe up for your sons college education.

GarySpicuzza · #3 (**permalink**) 12-28-2007, 01:38 PM

02passat, the answer to your question:

"Can I roll 100% of the pension funds into the 529 instead of my new 401k?"

......is, No.

Click HERE.

Quote:

Rollovers and Changes in Investment Strategy
Section 529(c)3(C) Change in Beneficiaries or Programs specifies the conditions upon which a rollover is permitted:

Rollovers are permitted once per twelve month period to another section 529 program for the benefit of the same beneficiary.
Rollovers are permitted for the benefit of another beneficiary who is a member of the family of the old beneficiary. There is no restriction on the number of times this can occur per twelve month period.
Changes in the beneficiary are permitted if the new beneficiary is a member of the family of the old beneficiary. There is no restriction on the number of times this can occur per twelve month period.