Are 529 plans transferrable?

Question

I'm thinking of opening one for myself, but in case I don't go to grad school, would the funds be transferrable to a child, if and when one were to come along? Thanks all!

Answer 1

Let's get real. You are on the right the course to save and are NEVER wrong doing so, especially, for college.

529's are great and most likely if you change plans you can cash it out (some plans may have a penalty so check this before hand). Many plans offer transfering rights so check with the ones you are interested in.

Saving for college is a great idea. Do it! Also, check out the strategies offered by mutual fund companies to save for college too.

Answer 2

IRS publication 970.  Yes, you can open a 529 plan for yourself.  You can either use it, cash it out (with penalty) or change the beneficiary to another family member.

Answer 3

You cannot open up a 529 plan for yourself.  A 529 plan is for minors.

Answer 4

You can open a 529 for yourself, and change the owner anytime to another family member.

Just about every state has at least one 529 plan.  Shop around to get the best deal.  Two main consideration are state income tax deductibility  and management fee.  

Usually one state does not allow state income tax deduction if you have 529 plan from another state, however sometime the management fee is enough to override that reduction in state tax.

Here are a couple of web sites that are really help in comparing various 529s.

http://www.sec.gov/investor/pubs/intro52...

http://www.savingforcollege.com/intro_to...

Best wishes.