Can a child be a beneficiary in a 529 plan?

One child can be listed as the beneficiary in several 529 plans, and you can change the beneficiary on your plan at any time without penalty. Suppose you opened an account for one child who doesn’t plan on going to college. In that case, you can change the beneficiary to another child, yourself, another relative or someone else.

Who can open a 529 plan account?

Anyone who wants to save for a child's education can open a 529 plan account. There may be benefits to opening an account. The account owner keeps control of the money, can make investment decisions, and can even change the beneficiary if plans change. There may be estate tax benefits in some cases.

How do I use my 529 plan money?

For most accounts, you can set up recurring transfers from your bank account to your 529 plan, similar to auto bill pay. How you use your 529 plan money depends on the plan type you choose. If you select the prepaid tuition plan, your money is usually reserved only for tuition and fees.