Reply to 529 Changing Beneficiary

Forum Index » Money and Finances

Reply to "529 Changing Beneficiary"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]Here is the answer OP:

https://support.wealthfront.com/hc/en-us/articles/214676923-Can-I-change-the-beneficiary-of-my-529-account-Who-is-eligible-to-be-a-new-beneficiary-#:~:text=Any%20change%20of%20the%20beneficiary,10%25%20federal%20tax%20on%20earnings.

Any change of the beneficiary to a person who is not an eligible member of the family of the current beneficiary is treated as a non-qualified withdrawal subject to applicable federal and state income taxes, as well as the additional 10% federal tax on earnings.

Eligible members of the family include the beneficiary’s:

Natural or legally adopted children
Parents or ancestors of parents
Siblings or stepsiblings
Stepchildren
Stepparents
Nieces or nephews
Aunts or uncles
The spouse of any of the individuals listed above
The spouse of the beneficiary
First cousins[/quote]

Can't you just transfer ownership to the parents then they can make their kids the beneficiaries?[/quote]

Same question.. Say I have $50K remaining in my child's 529 and transfer it to their name so they can manage it any way they deem fit. They in turn make their child the nominee.  Is that OK? Gift tax was considered during the annual contributions so this transfer should not have any gift tax consequences, right?  I know it's under the lifetime limits, etc. but do i still need to file paperwork if i do this?[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics