The short answer is yes — the same child can be the beneficiary of multiple 529 plan accounts. If several people — parents and two sets of grandparents, for instance — want to help fund a child’s education, they can either contribute to a single 529 account or set up separate plan accounts.

Can you use 529 for different child?

Parents can transfer 529 plan savings from one child to another without tax consequences by doing a plan-to-plan rollover or a beneficiary change. This flexibility is ideal for growing families and those who are uncertain about the future.

How old can a 529 beneficiary be?

There are no time or age limits on using a state 529 college savings plan. Money can be kept in a 529 plan indefinitely. 529 plans can be used for graduate school, not just undergraduate school, and can be passed on to one’s children. There is also no age limit on contributions to a 529 plan.

Can I transfer my 529 to another beneficiary?

529 education savings plan accounts can be transferred from one beneficiary to another eligible member of the family or rolled over into other 529 accounts for the same beneficiary or an eligible family member. You cannot change the beneficiary of a 529 account funded with custodial assets.

What should I do if I have a child as beneficiary?

Even if you have assets you would like to pass to children, consider life insurance to replace the parental income that would have supported them to the age of majority. You might also want to plan to cover the cost of college education through insurance, or to provide for your children into adulthood, as well.

Can a parent change beneficiary in a 529 plan?

529 plans generally have just one account owner, and that account owner (not the child) has control of the assets. That means one parent has the ability to change the beneficiary on the account or take a non-qualified distribution to pay for something other than college.

Can a child have the same 529 account?

The answer is “yes,” you can use the same account – but that doesn’t always mean you should. At first, it might seem easier to continue making contributions to the same 529 plan account, but you may run into some hiccups as your children get closer to college age.

What happens if you have two kids in school at the same time?

If a parent has two kids in school at the same time, then only distributions for the named child are covered.”. Any disbursements for other children would be subject to a 10 percent penalty and income tax. Also, opening separate accounts allows parents to choose the proper investment allocation for each child.