Q. I want to open a 529 acct with me as beneficiary, move unused funds from my son's 529 that he doesn't need, to pay my student loan. Will that create tax liability?
A. No.
Check with your plan administrator. It may be a simple matter of just changing beneficiaries in the existing plan.
There are no tax consequences or penalties when a 529 plan beneficiary is changed to a member of the beneficiary’s family. Qualified family members include the beneficiary’s:
- Spouse
- Son, daughter, stepchild, foster child, adopted child or a descendent
- Son-in-law, daughter-in-law
- Siblings or step-siblings
- Brother-in-law, sister-in-law
- Father-in-law, mother-in-law
- Father or mother or ancestor of either, stepmother, stepfather
- Aunt, uncle or their spouse
- Niece, nephew or their spouse
- First cousin or their spouse
https://www.savingforcollege.com/article/how-to-change-the-beneficiary-on-your-529-plan
