Hi Hal-Al,
Thanks for your response. I have two more questions.
1. You mentioned that we can rollover my son's Coverdell account to his 529 plan and then to a Roth IRA, penalty and income tax free. Are there any criteria that we have to meet for penalty and income tax free rollover from his 529 plan to his Roth IRA? The overfunding in my son's account is not due to receiving scholarship or not getting a higher education. It's because he goes to a state university with lower tuition. So can we still rollover his 529 plan to his Roth IRA penalty and income tax free?
2. On form 5329, it stated that additional tax doesn't apply when including distributions from an education account in income because you used the qualified education expenses to figure the American opportunity and lifetime learning credits. What does this mean?
Thanks!
