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How do I roll over money from one state's 529 plan to another without a penalty?

You can move funds between 529 plans for the same beneficiary once every 12 months without taxes or penalties. The cleanest method is a direct (trustee-to-trustee) rollover, where the plans transfer the money directly so you never touch it. If you instead take the money and redeposit it yourself, you have 60 days to complete the rollover or it becomes a taxable non-qualified distribution. Watch two traps: exceeding the once-per-12-months limit, and triggering state tax recapture if your old state clawing back a deduction you previously claimed. Rolling to a new state's plan can make sense to chase lower fees or better investment options, but weigh any lost home-state deduction first.

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