529 plan: can I use money from one kid's account to pay for tuition for the other kid?
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Anonymous
| Or does the money withdrawn have to go to the same beneficiary in whom the account is set up? |
Anonymous
| Whom the account is set up for. |
Anonymous
| My financial advisor says you can change the beneficiary. I've moved money between accounts before with no problems. |
Anonymous
+1. Our financial planner actually recommended that we only open one 529 plan. We have 2 kids. |
Anonymous
| You can change the beneficiary. |
Anonymous
| You have to change the beneficiary and move the money to the other account first before you spend it on "the other child" though. |
Anonymous
What state are you in? If you're in Virginia this probably isn't good advice because you may be sacrificing tax savings. |
Anonymous
| You can change it. You can also change it to someone else - a niece, your spouse, whoever. |
Anonymous
+2 |
Anonymous
Accidentally hit send too soon. Virginia lets you deduct up to $4,000 in contributions per account per year. Our tax advisor recommended that my husband and I each set up an account to benefit each of our two children (so four accounts total), so we can deduct up to $16,000 a year in contributions rather than just $4,000. |
Anonymous
| Tax benefits accrue per account. So, more accounts, more tax benefit. My kids are in college and as far as I see, each account can have just the one beneficiary and set up to send $ to each kid's college at my direction. I don't see how one family account could work. |
Anonymous
To add: DS1 won't use all his 529 money and I will change the beneficiary on his account to DS3 when needed. |