529 question

I don't know.

But, for what it's worth, when I (quite recently) opened a 529 plan for my kid, I had to provide the SSN of the beneficiary. I believe also to specify the beneficiary's relation to me as the account holder.

I'm not sure how a withdrawal for the child's educational expenses would occur in your scheme, but I don't know how the checks and balance all occur to validate qualifying withdrawals from a 529.

But aren't 529 assets counted as the parent's anyway? Or have financial aid formulas taking separate treatment of 529 money in the financial aid formulas?

Best Regards,

-- Todd H.

When our daughter was born I opened a 529 acct with me as the owner and she was the beneficiary. After her baptism, we had lots of checks that all went into her 529 acct. I don't think it would be a problem. If your child's grandparents have already opened a 529 acct with them listed as the owner I don't see why you couldn't contribute to it. HTH

Since the 529 beneficiary can be changed, taking money that belongs to the minor already and putting it into the 529 isn't advised. I believe the question comes up more often as "I have a UGMA/UTMA account for my child, can I put it into his/her 529?" The answer tends toward 'no'. JOE

I'd agree with that.

However, keep in mind there's such a thing as a 529-UTMA. It's a 529 opened under UTMA statutes. The minor is both owner and beneficiary, and the beneficiary can't be changed (until the minor is of age, at which point it turns into a regular 529 and the now no-longer-minor can change the beneficiary as he sees fit). We've opened one of these for our son, specifically to have a place to put money that relatives/friends have given him to be set aside for college.

Nothing would prevent you from contributing to it, however, you'd be missing out on the deductibility of that contribution in the event you live in a state that allows you to deduct 529 contributions from state income tax returns.

-- Todd H.