Really can't believe how many people can ask the same question over and over without reading.
I have experience in this particular nuance, a caveat for others attempting to transfer upgrades:
I don't think you understand. You can't do any kind of upgrade off the unlimited data line. That includes transferring the upgrade to the non smart phone line. If you were to take advantage of the upgrade via a transfer from unlimited data to a non smart phone you will lose the unlimited data regardless of what phone you get. Bottom line is that unlimited data line can't use the upgrade price in anyway shape or form.
My experience confirms that this is unfortunately correct.
I have a UDP phone eligible for upgrade and a 2GB phone not eligible. Before reading this thread I went online at 3AM Friday and did a 'Transfer Upgrade' from the eligible UDP line to the non-eligible 2GB line and upgraded through the 2GB line. The system indicated that I was making contract renewal choices for the 2GB line (recipient of the transfer), as only that line's icon and mtn were identified on the top of the screen when I had to select the new data plan, and it even said 'Existing Plan' in bold next to the 2GB/$30 tier, which I reconfirmed.
Called back to confirm the next day and was informed that the originally eligible UDP line would be the one whose contract was modified and extended, consistent with
mac.cali and
spacebetween's comments. I see now that this is clearly the policy regarding transfer of upgrades, but all indications provided by the online system were that the contract extension applied to the transfer recipient's line (it even asked me to confirm that the recipient's future upgrade date would be swapped to the transferror line). Obviously I would have elected to pay retail price (+$450) rather than an extra $60/month for a line that uses 8+ GB (+$1440) if the information the system provided was correct.
I scavenged my cache and history and gathered evidence that the iconic plan options screen referenced the transfer recipient's MTN. Here's the response from Verizon:
You: I'm concerned because I upgraded my device yesterday by transferring an upgrade from Phone A to Phone B
You: but your website now indicates that it's Phone A that is waiting for activation on its line
Iesha F.: I'd be happy to assist you.
You: great, thanks
Iesha F.: The transfer upgrade does not work online, unfortunately. We are trying to have the tab fixed at this time. I do apologize for the inconvenience
Iesha F.: Unfortunately the transfer upgrade tab does not function as it should online. I do apologize. ...
You: but the belief that your online system was providing accurate information was material to the contract decisions that were executed through that very same online system
Iesha F.: We are aware of the issue and are trying to have the tab fixed for the online orders. I am sorry. ...
So although the online contract selection screens might make it look like you're renewing the contract for the recipient of the transfer, you're actually making selections for the line from which the transfer originated, even though the transfer recipient's device icon and MTN is displayed at the top of the screen. I also never got the warning message about losing the Unlimited data plan some others have referenced (this on Chrome browser version 21.0.1180.89). Verizon has admitted ex-post that the online Transfer Upgrade utility 'does not function as it should', so be careful making contract decisions based on the information it provides.
The formerly UDP line still shows an Unlimited data option, and the rep said it won't be cancelled until the new handset is activated. Wondering what happens if I just never activate it? I asked what if I just use it over WiFi without activating Verizon service, she went away and returned with a uselessly deferential response. I'll probably try to call and cancel the order and contract modification tomorrow.