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Taxes - Transfers - Rollovers
Q. What are the tax advantages of the plan?
A. Your investment grows tax-deferred, and when the
student (beneficiary) is ready for college, the earnings on
qualified withdrawals are not subject to federal income tax
or State of Florida taxes.
We cannot provide tax advice and encourage you to consult
your own tax advisor.
Q. Are the contributions tax deductible?
A. No. We cannot provide tax advice and encourage you to
consult your own tax advisor.
Q. Are there any estate planning or gift tax benefits?
A. Federal law allows you to contribute up to $60,000 in
a lump-sum amount per beneficiary (student) or up to
$120,000 for married couples in one year, without incurring
any gift taxes. While other contributions within five years
will be subject to the gift tax, your account can continue
to grow and is no longer considered an asset in your federal
taxable estate.
The federal gift tax exclusions are periodically adjusted
for inflation. If a contributor makes a lump-sum gift and
dies before the end of the five-year period, the money may
remain in the Florida College Investment Plan, but a portion
of the contribution may be subject to federal estate taxes.
Withdrawals for qualified college expenses are not a
taxable gift.
We cannot provide tax advice and encourage you to consult
your own tax advisor.
Q. I already have another 529 college savings plan.
Can I transfer it to the Florida College Investment Plan?
A. Yes. The Florida College Investment Plan will accept
a rollover from another 529 plan. There is no charge to
rollover another 529 plan to the Florida College Investment
Plan.
With your rollover request, you must attach a statement
showing the earnings portion of the distribution. If you do
not attach the proper documentation, the entire amount of
the rollover contribution will be treated as earnings and
may be taxable.
Federal law limits one rollover or transfer for the same
beneficiary (student) to once every 12 months.
We cannot provide tax advice and encourage you to consult
your own tax advisor.
Q. Can I rollover my Florida Prepaid College Plan to
the Florida College Investment Plan?
A. You cannot rollover your Florida College Prepaid Plan
directly to the Florida College Investment Plan. You can
cancel your Florida Prepaid College Plan and get a refund.
Your refund will be based on the amount paid for your
Florida Prepaid College Plan. You will not receive any
interest or earnings. If you have had your Florida Prepaid
College Plan less than two years, you will be charged a $50
cancellation fee. If you want, you may then contribute your
Florida Prepaid College Plan refund to the Florida College
Investment Plan.
Q. Can I rollover my savings bonds, Coverdell
Education Savings Account or transfer my UTMA/UGMA to the
Florida College Investment Plan?
A. Yes. The Florida College Investment Plan will accept
a rollover of a qualified U.S. Savings Bond, a Coverdell
Education Savings Account (Education IRA) or a transfer from
an UTMA/UGMA account. There is no charge to rollover a
savings bond, Coverdell Education Savings Account (Education
IRA) or UTMA/UGMA to the Florida College Investment Plan.
With your rollover request, you must attach a statement
showing the earnings portion of the distribution. If you do
not attach the proper documentation, the entire amount of
the rollover contribution will be treated as earnings and
may be taxable.
We cannot provide tax advice and encourage you to consult
your own tax advisor.
Q. Can I contribute to the Florida College Investment
Plan and a Coverdell Education Savings Account (Education
IRA) for the same beneficiary (student) in the same year?
A. If you qualify for the Coverdell Education Savings
Account, yes. We cannot provide tax advice and encourage you
to consult your own tax advisor for more information.
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