Can I rollover into a 529?

Hello. My husband recently quit his job to stay home and raise our 1 month old son. His work contributed to a profit sharing plan that he did not contribute to and now we have to decide what to do with the "free" money. We believe the balance is going to be $13,000. We are thinking about dividing it up between retirement, college, and a little bit in cash for some work on our house. My question is, can some of it be rolled over into a 529 without taxes and penalty? Thanks in advance for all your input!

Unfortunately, morgan1522, if you remove the money from the deferred account and place it anywhere other than an IRA, 401(k), or other qualified retirement plan, there will be taxes and penalties on the withdrawal.

So, regarding your plans, the only part of your "divvying" up the funds that wouldn't be subject to tax and penalty is retirement. College savings (in a 529 plan) and home improvements would not be qualified uses of the funds.