Lux Investing
Can a couple invest money in a 529 Plan long before a child is born? Any other options?
While I am 31, not married, and without kids, I wonder if a person can start investing money in this plan prior to having a child. A little unsure. As my boyfriend and I are making serious moves towards marriage and having children, I have began to wonder what financial moves can we take early on (once we're married, of course). http://money.aol.com/top5/investing/money-moves-for-your-forties-1 Wow! Thanks for such a thorough, quick answer Finance Gal!
Public Comments
- Yes, you can open the 529 for you listing yourself as the account owner and beneficiary, and then change the beneficiary when you have a child. Generally the account owner can change the designated beneficiary at any time. There are no tax consequences to changing the designated beneficiary as long as 1) the new beneficiary is a member of the family of the old beneficiary 2) for GST tax purposes, the new beneficiary is assigned to the same generation as (or a higher generation than) the old beneficiary. Member of the family is defined to mean: A son or daughter, or a descendant of either; A stepson or stepdaughter; A brother, sister, stepbrother, or stepsister; The father or mother, or an ancestor of either; A stepfather or stepmother; A cousin; A son or daughter of a brother or sister; A brother or sister of the father or mother; A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law; or The spouse of the designated beneficiary or the spouse of any individual described in one through nine above. Hope that helps!
