You can establish a
529 savings
or
prepaid plan
for almost anyone that you expect will go to college, vocational school, or graduate school after high school. The
beneficiary
might be an infant who won’t be attending college for 18 years, a junior or senior high school student, or even yourself if you’re planning to go back to school to change careers or pursue an advanced degree.
Beneficiary rules
Different plans set their own rules affecting beneficiaries. For example, not all plans allow the owner and the beneficiary to be the same person. Other plans may cap the age the beneficiary can be when you open the account, and some have rules for when the account must be distributed.
Other plans may require you to participate for a minimum number of years before you can withdraw. It’s important to understand the rules and restrictions of any plan you’re considering to make sure it’s a smart choice for you and your beneficiary.
You can
change the beneficiary of your 529 account at any
time as long as the new beneficiary is a member of
the same extended family as the original beneficiary.
Or, you may decide to wait to see if your beneficiary
reconsiders higher education at a later time.
However, some plans limit the number of years you
can keep the account open, which means you may have
less flexibility in naming a new beneficiary or waiting
for the original one to enroll.
When you change
the beneficiary of your 529 account, you must choose someone
who is a member of the same family as the original beneficiary.
The new beneficiary can be the original beneficiary's:
Son or daughter, grandson or granddaughter, stepson
or stepdaughterBrother or sister, stepbrother or stepsister, half-brother
or half-sisterFather or mother, stepfather or stepmotherNiece or nephewAunt or uncleFirst cousinSpouseIn-law
