Rollovers/Transfers From Coverdell Education Savings Accounts

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  1. Funds from a CSE may be transferred into Future Scholar without adverse tax consequences.
  2. If money taken out of a CSE is contributed to a 529 plan, that contribution is considered a withdrawal from the CSE to pay for qualified education expenses.
  3. Since money transferred from a CSE to a 529 is not technically considered a rollover, the 60-day rollover window does not apply; however, the money must be contributed to the 529 in the same calendar year in which it is withdrawn from the CSE.
  4. The proceeds check from the transfer of a CSE must be made payable to: Future Scholar 529 College Savings Plan FBO [name of Designated Beneficiary] and must be accompanied by appropriate documentation of the principal and earnings portion of the contribution (see below).

Breakdown of contributions and earnings and appropriate documentation: The Account owner must provide a statement or tax report issued by the program from which the Transfer or Rollover is being made that shows the principal and earnings portion of the rollover contribution. If this documentation is not provided, the entire amount of the contribution will be treated as earnings.

Please consider the investment objectives, risks, charges and expenses carefully before investing in the Future Scholar 529 College Savings Plan. Contact your financial advisor or Columbia Management for a Program Description, which contains this and other important information. Read it carefully before investing. You should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program. Columbia Management Investment Distributors, Inc., distributor and underwriter.

This information does not constitute tax or legal advice. Neither the State Treasurer, Columbia Management Investment Advisers, LLC, nor its affiliates, provide tax or legal advice. Please consult your tax advisor before making tax-related decisions.
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© 2010 South Carolina Office of State Treasurer

On April 30, 2010, Ameriprise Financial, Inc., the parent company of RiverSource Investments, LLC, acquired the long-term asset management business of Columbia Management Group, LLC, including certain of its affiliates, which were, prior to this acquisition, part of Bank of America. In connection with the acquisition of the long-term assets, certain clients of Columbia Management Advisors, LLC (including the Columbia Funds) have a new investment adviser, RiverSource Investments, LLC, which is now known as Columbia Management Investment Advisers, LLC. On the same date, Ameriprise Financial also acquired Columbia Wanger Asset Management, LLC (CWAM). CWAM will continue as the investment adviser for Columbia Acorn and Wanger Funds and no changes are anticipated in the existing investment management team. For those clients that use the services of a subadviser, those arrangements are continuing unless notified otherwise. RiverSource Fund Distributors, Inc., now known as Columbia Management Investment Distributors, Inc., member FINRA, will act as the principal distributor of the Columbia, Wanger, Columbia Acorn, RiverSource, Seligman and Threadneedle branded funds. RiverSource Service Corporation, now known as Columbia Management Investment Services Corp., is the transfer agent for the Funds.

Investments made in Future Scholar are: NOT FDIC INSURED. No Bank Guarantee.May Lose Value.