Hi johnpaulcavanaugh:
Thanks for the interesting question.
The answer to your question is "yes". You can create a 529 account at
any time with yourself as beneficiary and then transfer in future all
or any of it to another family member (child, grandchild, etc.).
Here are some sites that confirm this information:
MAKING CHANGES TO YOUR 529 ACCOUNT
URL: http://www.forefieldkt.com/KT/trns.aspx?xd=ED-DS-0001-006&il=ba&xsl=content
Quote: "If the existing beneficiary no longer needs the funds in your
529 account (e.g., he or she gets a full scholarship or decides not to
go to college), you may want to designate a new beneficiary. All 529
plans allow the account owner to change the designated beneficiary,
and it's actually quite simple to do. Just fill out a change of
beneficiary form and submit it to your 529 plan administrator.
Depending on your plan, you may have to pay an administrative fee.
If the existing beneficiary needs only some of the funds in your 529
account, you can also do a partial change of beneficiary, which
involves establishing another 529 account for a new beneficiary and
rolling over some funds from the old account into the new account.
Note, though, that in order to avoid penalties and taxes when changing
beneficiaries, the new beneficiary must be a family member of the old
beneficiary. According to Section 529 of the Internal Revenue Code,
'family members' include children and their descendants, stepchildren,
siblings, parents, stepparents, nieces, nephews, aunts, uncles,
in-laws, and first cousins. States are free to impose additional
restrictions, such as age and residency requirements."
Fidelity Advisor 529 Plan Offering Statement
URL: http://www.nh.gov/treasury/Divisions/Unique/529-FactKit.pdf
Quote: "At any time, you can change the beneficiary of a Fidelity
Advisor 529 Plan account to someone who is recognized by federal tax
law as a family member of the original beneficiary..." (page 16)
What is a 529 Program?
URL: http://www.seligman.com/public/general/article_what_is_529.html
Quote: "There are no costs or penalties associated with changing the
Beneficiary of your Account. However, you cannot transfer more than
the Program's contribution limit to the new Beneficiary's Account.
Also, the new Beneficiary must be a member of the original
Beneficiary's family, as follows: son or daughter (natural or legally
adopted), or a descendant of either; a stepchild; a brother or sister
(by whole or half-blood); a stepsibling; the father or mother, or an
ancestor of either; a stepmother or stepfather; a niece or nephew; a
first cousin; an aunt or uncle; an immediate in-law (mother, father,
brother, sister, daughter, son); or the spouse of the original
Beneficiary or any family member listed. Changing the Beneficiary to
someone in a younger generation may result in a Federal gift tax and a
generation-skipping tax. Please consult your financial advisor for
more information."
Note: Click on the link for "within certain limits" near the bottom of
the page to get a pop-up with this quote.
Free money up for grabs!!!
URL: http://www.epinions.com/content_70248599172
Quote: "Even better... you can begin saving for your unborn future
children. Simply name yourself as the student and change it to your
newborn child 5 years from now! Imagine that!!"
Can I open a 529 account and name myself as beneficiary?
URL: http://www.forefieldkt.com/KT/trns.aspx?xd=ED-FQ-0001-029&il=ba&xsl=content
Quote: "Under many 529 plans, you can be both the owner and
beneficiary of the account. This can be useful if you are older and
plan to attend college or graduate school in the future, or if you are
planning for your future children."
Search Strategy (on Google):
* "529 account" "future children"
* "529 account" "changing beneficiaries" site:.gov
* "529 account" "changing beneficiaries"
* "Internal Revenue Code" "section 529"
I hope this helps!
websearcher |
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