Move Funds

Move funds into or out of your Virginia529 account

Specific rules apply when moving funds, so be sure to review the Invest529 or Prepaid529 Program Descriptions and the information below before you get started.

Moving Funds with Virginia529

I want to:

Move funds between Virginia529 accounts

You can move funds between your Virginia529 accounts (Invest529/Prepaid529/CollegeWealth) via rollover or an investment option change.

Only one rollover per beneficiary (student) is allowed during a rolling 12-month period. The account owner should be the same on both accounts. Example: moving funds from your Prepaid529 account into your Invest529 account.

Only two investment option changes per student are allowed per calendar year. Example: changing portfolios on your account.

What you’ll need:

Move Funds Request

Fund your Virginia529 account with proceeds from another 529 plan or transfer funds to or from other Virginia529 accounts.

Online

If you’d like to move funds between Invest529 accounts and the account owners are different people, please see the Transfer Funds section for more information. If you’d like to move funds between an Invest529 account and another 529 program, please see the CollegeAmerica and qualified tuition program sections.

Move funds to/from CollegeAmerica

You can move funds between a CollegeAmerica account and your Virginia529 account via an investment option change (Invest529/CollegeWealth) or a rollover (Prepaid529).

Only two investment option change per beneficiary (student) are allowed per calendar year. Only one rollover per student is allowed during a rolling 12-month period.

What you’ll need:

Move Funds Request

Fund your Virginia529 account with proceeds from another 529 plan or transfer funds to or from other Virginia529 accounts.

Online

Required Items

Copy of your CollegeAmerica statement

Move funds to/from a qualified tuition program other than Virginia529

You can move funds between another state’s 529 plan (qualified tuition program or QTP) and your Virginia529 account via a rollover.

Only one rollover per beneficiary (student) is allowed during a rolling 12-month period and account owners on both accounts must be the same.

If you are moving funds to Virginia529 from another state’s 529 plan and do not already have an active Invest529 account, you’ll need to open a new account before you get started. You should also check with your current 529 plan administrator regarding any special instructions or forms needed.

What you’ll need:

Move Funds Request

Fund your Virginia529 account with proceeds from another 529 plan or transfer funds to or from other Virginia529 accounts.

Online

Required Items

Copy of your current 529 plan account statement (required)
Separate instruction/forms from current 529 plan (if necessary)
Signature guarantee (if necessary)

Application – Invest529

If necessary, open a new Invest529 account.

Online

Funds can also be rolled over from a Coverdell Education Savings account or Qualified U.S. Savings Bonds. For Coverdell accounts, you must liquidate the account and deposit the funds into an Invest529 account.

What you’ll need:

Coverdell/U.S. Savings Bond Transfer

Fund your account with proceeds from a Coverdell Education Savings Account (EDUCATION IRA) or Series EE or I U.S. Savings Bonds.

Online

If you are moving funds to another qualified tuition program, please contact that plan’s administrator for more information.

Transfer funds to a new Account Owner

You can transfer some of your funds in your Virginia529 account to another Virginia529 account owner or to your student’s sibling or other qualifying family member (as defined in IRC Section 529). There is no limit on the number of transfers.

What you’ll need:

Move Funds Request

Fund your Virginia529 account with proceeds from another 529 plan or transfer funds to or from other Virginia529 accounts.

Online

Moving funds between Invest529 accounts with different owners can occur when:

both account owners have the same portfolio for the same student or
one account owner wants to move some funds from their Invest529 account to another Invest529 account owned by a different person

Note: This type of movement cannot be completed online and signatures the of both account owners are required. Please contact Virginia529 to obtain the necessary form.

If you would like to change the ownership of your account to another individual or entity, submit the Account Owner Change Form.

Roll over funds to a Roth IRA

Starting January 2, 2024, you can roll over unused funds from your Virginia529 account into your student’s Roth IRA, subject to certain requirements.

Account owners are responsible for determining the balance and eligibility of their Virginia529 account. You can access your Virginia529 account balance and history by signing into your online account.

There are some rules regarding 529 to Roth IRA rollovers:

The rollover must go into an existing Roth IRA account owned by the beneficiary (student) currently listed on the Virginia529 Account.
The 529 account must have been opened for at least 15 years (including any years spent with another qualified tuition program.)
The eligible amount cannot be more than the balance of the 529 account as of five years prior to the rollover date.
Rollovers from one or more 529 account(s) to a Roth IRA for the same beneficiary may not exceed $35,000 in total.
Rollovers cannot exceed annual contribution limits. For 2024, the Roth IRA contribution limit is $7,000 ($8,000 if over 50 years old), which includes any other contributions the individual may have made during the year.
A rollover to a Roth IRA is not counted towards the annual 529 rollover limit.

What you will need:

Roth IRA Rollover Request

Request a rollover of unused funds to a Roth IRA for the benefit of your student

Online

Ready to move your funds?

The easiest way to do this is online.

Start the Process

Move Funds FAQs

: Yes, you can move funds to a Roth IRA owned by the beneficiary (student) on your Virginia529 account. Your 529 plan must be opened for at least 15 years. The beneficiary must initiate the request with the Roth IRA provider and you must complete a Move Funds Authorization form.
: Yes, you may move funds from another qualified tuition program into a Virginia529 account by completing a Move Funds Request. If you do not already have an Invest529 account, you must open an Invest529 account before completing the request.

Funds may also be rolled over from Coverdell Education Savings accounts or Qualified U.S. Savings Bonds. See the Invest529 Program Description for more information.
: Yes, you must liquidate the EE or I U.S. Savings Bonds and/or Education Savings Account and complete the Coverdell/US Savings Bond Transfer Form. Keep in mind, Virginia529 is not responsible for redeeming the EE or U.S. Savings Bonds or coordinating the Coverdell Account transfer with the originating financial institution. You must also provide Virginia529 with the basis and earnings for your redemption of qualified Series EE or I U.S. Savings Bonds or the transfer of a Coverdell Education Savings Account at the time these proceeds are deposited to your Virginia529 account. If the information is not received within 60 days, the entire amount will be recorded as earnings.
: CollegeAmerica is available only through financial professionals. Generally, your statement will have “CollegeAmerica” listed in the account title or name.
: You are allowed two investment option changes per beneficiary (student) per calendar year.

You are allowed one rollover per student during a rolling 12-month period.

There is no limit on the number of transfers.

Note: Roth IRA rollovers do not count against your yearly rollover limit. Please read the applicable Program Description for more information.
: It typically takes approximately three (3) business days to process requests submitted online to move funds between Virginia529 accounts (if mailing paper forms, the processing time may be longer). For rollovers involving another qualified tuition program (QTP) or a Roth IRA, please allow up to 30 days for processing after all required documentation is received. Account owners should check with the other plan’s administrator regarding their processing times.
: You can upload your supporting documentation or signature pages through your online account. After logging in, select Upload Documents under the Help Desk tab. You may also upload the documents securely by using Virginia529’s Secure Upload Link.
: An account owner may initiate an investment option change twice per calendar year per student. If there is a change in student, an investment option change can also be made at the same time.

Glossary

Investment Option Change

A change to all or part of an account owner's Virginia529 account holdings to another investment option within Virginia529 is an investment option change. IRC Section 529 permits an investment option change twice per calendar year by an account owner for all Virginia529 accounts held for a specific student. Also known as an Investment Direction Change.

Rollover

A tax-free reinvestment of funds.

From one Qualified Tuition Program to another: Once funds are distributed there is a 60-day time frame in which funds must be deposited into the new Qualified Tuition Program. IRS regulations allow only one Rollover for the same Student during a rolling 12-month period. NOTE: Requests to move funds among Invest529 or CollegeAmerica are considered Investment Direction Changes, not Rollovers.
From a 529 plan to a Roth IRA: Certain unused funds in a 529 account can be moved to a Roth IRA for the
benefit of the student listed on the account, as long as the account has been opened for at least 15 years
and meets additional specific rules. A rollover to a Roth IRA is not counted towards the 12-month rollover
limit for 529 accounts.

Roth Individual Retirement Account (IRA)

An individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. Starting in 2024, families who are saving for education in 529 accounts will be allowed to roll over unused funds from those accounts into a Roth IRA without incurring tax penalties. Related: Families Can Roll Unused 529 Funds to Roth IRAS Starting 2024

Transfer

A tax-free movement of funds between Virginia529 accounts where the Account Owner/Beneficiary (student) combination is different on the receiving account.