Rollovers

Rollover from an Out-of-State 529 Plan

Rollovers 2016-11-08T12:34:05+00:00

Rolling an out-of-state 529 plan into CollegeCounts is an easy process that can provide significant benefits. As you look into the potential for a rollover, be sure to review the considerations and benefits with your tax and financial advisors.

Three Great Benefits of Rolling Over to CollegeCounts:

  1. The State of Alabama offers an income tax deduction of up to $5,000 ($10,000 for married taxpayers filing jointly, if both parties contribute) for contributions to CollegeCounts. A rollover into the CollegeCounts 529 Fund can be deducted for Alabama state income tax purposes. The full amount rolled over can be deducted up to $5,000 per Alabama taxpayer and $10,000 for married taxpayers filing jointly, if both parties contribute.
  2. The program offers access to 17 quality fund families.
  3. You can invest in Fee Structure A with no front-end load. If you previously paid a front-end sales charge, contributions that constitute a qualified rollover distribution from another 529-qualified tuition program or a Coverdell Education Savings Account may be made to accounts under Fee Structure A without the imposition of an initial sales charge. This initial sales charge waiver is only available through certain broker-dealers. Check with your financial advisor to see if you are eligible before initiating a rollover.

Three Easy Steps to Completing a Rollover:

  1. Review your existing out-of-state 529 with your tax and financial advisors. Consider any surrender charges or penalties the out-of-state 529 plan may impose.
  2. If you don’t have a CollegeCounts 529 Advisor Plan account, contact your financial advisor to establish one.
  3. Complete the Rollover Form with your financial advisor.
    1. Obtain a Medallion Signature Guarantee on the form.
    2. Attach a copy of latest statement from your out-of-state 529 plan.
    3. Mail the form to CollegeCounts, and let us handle the rest.