re: 529 Questions (probably foolish ones) - moving to another state

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What are the benefits, if any, of rolling over the approximately $16K in the Illinois plan into the Louisiana plan?

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Consolidation mainly. And potentially different fund choices which may impact rate of return, if it matters.

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If this is worth doing, how can I avoid taxes on what I transfer from one plan to the other?

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You'd need to look at the Illinois transfer policies to see if they have a penalty to transfer out. You may have to pay back some states taxes etc. If you really want to transfer.

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Is there a penalty if my daughter withdraws from her 529 plan in 16-20 years for college tuition if she no longer lives in Illinois?

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Wouldn't think so. As long as your meeting Illinois qualified distributions rules, shouldn't matter where you live when you make a qualified withdrawal. Plenty of people of have state 529s in states that they don't live in. But you're also talking 15-20 years from now, rules could certainly change, but not sure if I'd worry a lot about it at this moment.