Property Exempt From Levy

ID:
Office:
UILC:
CCA_2010022411594520
---
6331.03-00, 6334.00-00
Number: 201017044
Release Date: 4/30/2010
From: ---
Sent: Wednesday, February 24, 2010 12:00:32 PM
To: ---
Cc:
Subject: RE: Levy question
Hi---
As you noted, as a legal matter, Coverdell ESAs and 529s are not exempt from levy.
But note: There are differences between the two types of accounts, so the RO needs to be mindful of who the taxpayer is and what property rights, if any, he has. For example, the person setting up a Coverdell ESA does not has the right the withdraw the funds (which are held for the benefit of the beneficiary), while the person setting up a 529 can withdraw the funds (with tax consequences.) There are some general rules, but the RO should also try to obtain the agreement governing the plan/account.
I've found no administrative policy on levying on these types of accounts (and doublechecked with the NO levy analyst). ---------