Can I roll over a 529 College Savings Plan into my Washington State ABLE account?

Yes, you can roll over money from a 529 College Savings account into a Washington ABLE account without incurring federal taxes or the federal tax penalty.  The rollover must be either to the same beneficiary’s ABLE account or to the ABLE account of a family member of the beneficiary. 

If the rollover is to the beneficiary’s family member, they must be considered a “Member of the Family” as defined in Section 529 of the Internal Revenue Code.  That definition includes the beneficiary’s

• Son, daughter, stepson or stepdaughter, or a descendant of any of them

• Brother, sister, stepbrother, or stepsister

• Father or mother, or an ancestor of either

• Stepfather or stepmother 

• Son or daughter of a brother or sister

• Brother or sister of the father or mother

• Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law

• Spouse or the spouse of any individual described above

• First cousin

There is a $19,000 rollover limit (less the current tax-year ABLE contributions).

You can find the appropriate 529 College Savings to ABLE Rollover Form here.