Yes, you can transfer (aka “roll over”) savings from another 529 plan to a Wealthfront 529 account.
How it works (if you don’t already have a Wealthfront 529 account)
- Open a Wealthfront 529 account and select "529 Rollover / Plan Transfer" as your funding method.
- We'll email you a partially-prefilled rollover request form that you'll complete, sign and mail/fax to your other 529 plan. This should only take a few minutes.
- Your other plan will send a check directly to Wealthfront, and we'll invest the proceeds according to your Wealthfront 529 investment plan. This generally takes a few days to a few weeks after you mail the form, depending on your other plan.
- The IRS allows one tax-free rollover of a 529 account per 12-month period for the same beneficiary (i.e. the student). If you’re transferring from a 529 plan sponsored by Nevada, which also sponsors the Wealthfront 529 Plan, the transfer is considered an “investment reallocation” instead of a rollover. You can do a tax-free investment reallocation twice per calendar year. If you transfer more often than allowed, the transfer will be treated as a non-qualified withdrawal resulting in federal and applicable state income tax and the additional 10% federal tax on earnings.
- The IRS allows tax-free rollovers for the benefit of a new beneficiary so long as the new beneficiary is a member of the current beneficiary’s family (as defined here). If the new beneficiary is not an eligible member of the family, the transfer will be treated as a non-qualified withdrawal resulting in federal and applicable state income tax and the additional 10% federal tax on earnings.
- If you roll over from another state's plan for which you received state tax benefits on prior contributions, you may be subject to adverse state tax consequences. You should consult your other plan and/or personal tax advisor for tax advice based on your particular circumstances.
For more information about the Wealthfront 529 College Savings Plan (the “Plan”), download the Plan Description and Participation Agreement or request one by calling
844-995-8437 or emailing firstname.lastname@example.org. Investment objectives, risks, charges, expenses, and other important information are included in the Plan Description and Participation Agreement; please read and consider it carefully before investing. An investment in the Plan is not insured or guaranteed by the FDIC or any federal or state government or agency. You could lose all or portion of your investment. Wealthfront Brokerage Corporation serves as the distributor and the underwriter of the Plan.
Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program
The Plan is administered by the Board of Trustees of the College Savings Plans of Nevada (the “Board”), chaired by the Nevada State Treasurer. Ascensus Broker Dealer Services, Inc. (“ABD”) serves as the Program Manager.
Earnings on nonqualified withdrawals are subject to federal income tax and may be subject to a 10 percent federal tax penalty, as well as state and local income taxes. The availability of tax and other benefits may be contingent on meeting other requirements.
The information contained is provided for general informational purposes, and should not be construed as investment advice. Nothing should be construed as tax advice, solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront clients. This article is not intended as tax advice, and Wealthfront does not represent in any manner that the tax consequences described here will be obtained or will result in any particular tax consequence.