Can I roll over 100% of the value of my DC529 plan to a Utah plan?

[Anonymous]

I've had my DC 529 open for almost a decade, and continue to contribute $to contribute monthly at the maximum rate of $4,000 per year. It is only now occurring to me that I should roll over all or some of the balance to a fund with lower fees, like the Utah Fund.

I have had the account for two years, so I know I can roll it over with no tax penalty. But how much can I roll over? Can I switch 100% of the account to a Utah account, even the amount that I contributed just last month, or do I have to leave a certain amount in the account to avoid losing tax benefits?

Thank you for advice and citations if you have them - I cannot find the answer to this question anywhere.

[Anonymous]

I want to do this too! So I am bumping this up. I looked into it and found no real answer last year.

[Anonymous]

I looked at the savingforcollege.com website and here is what says on DC plan:

State tax recapture provisions:

The principal portion of nonqualified withdrawals from this plan, and rollovers within two years of account opening, are included in District of Columbia taxable income to the extent of prior District of Columbia tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability and withdrawals made on account of the beneficiary's receipt of a scholarship.

Does this mean that after opening my dc 529, waiting 2 years I can roll it over to another state without being penalized for prior tax deductions? Should this be year by year ie i can rollover contributions from 2011 and before now? or everything as my kids accounts are much older than 2 years old.