A contribution to a 529 plan is considered a qualified education expense, just like money that was spent for tuition or other costs of education. That means you can take money out of a Coverdell account and put it in a 529 plan without paying tax. Any financial institution that does 529 plans should be able to help you with the details. The earnings "transfer over" to the 529 plan so they'll be treated as earnings when money comes out of the 529 plan.
For details on how to enter in TurboTax, see https://ttlc.intuit.com/community/taxes/discussion/we-rolled-funds-out-of-my-son-s-coverdell-esa-acc...
This is an old post. the comment about not being able to use this money for primary or secondary education, or for computer expenses is no longer true for 529 plans
