ABLE’s definition of qualifying disability expenses includes “education.” Can I roll my 529 account into an ABLE account?

Assets from a 529 account can be rolled over into an ABLE account, though amounts to be rolled over are subject to the $17,000 annual contribution limit. Current federal law requires such rollovers to be completed by December 31, 2025.

To make a direct rollover from a 529 account, the ALR or beneficiary can fill out the 529 College Savings to ABLE Rollover (Direct) form. In a direct rollover, the two programs transfer assets directly from one to the other.

For an indirect rollover, in which the account holder of the 529 plan would take possession of funds before they are transferred, the 529 College Savings to ABLE Rollover (Indirect) form should be used. In an indirect rollover, assets have to be deposited to the new ABLE account within 60 days of withdrawal.

ABLE account holders can participate in both 529 and ABLE programs simultaneously.