finance






 

Question by  stumiester (1)

Can I transfer a traditional 401k into a 529 plan without penalty if it's for tuition for my child?

 
+7

Answer by  RobertB (111)

No, because the 401K is a retirement plan and therefore the money has not been taxed. Though the 529 is also tax qualified, it is intended for education expenses. Because the plans are intended for different purposes, you cannot transfer funds between the plans without penalty.

 
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