How to Change the Beneficiary of a 529 Plan

By Kay Lee

A 529 plan is either a pre-paid tuition plan or a savings plan maintained by a state or a school to help defray educational expenses. The laws under which these plans are created promote savings by offering federal or state tax benefits for contributions to the plan. Accounts are to be used to pay for college tuition or the cost of other training after high school for a designated beneficiary. Although anyone can be named as a beneficiary, they are typically children or grandchildren of the individuals who open the account. If the beneficiary does not attend college or receives a full scholarship, you may need to change the beneficiary of the plan. There are no tax consequences if you change the beneficiary to another member of the family.

A 529 plan is either a pre-paid tuition plan or a savings plan maintained by a state or a school to help defray educational expenses. The laws under which these plans are created promote savings by offering federal or state tax benefits for contributions to the plan. Accounts are to be used to pay for college tuition or the cost of other training after high school for a designated beneficiary. Although anyone can be named as a beneficiary, they are typically children or grandchildren of the individuals who open the account. If the beneficiary does not attend college or receives a full scholarship, you may need to change the beneficiary of the plan. There are no tax consequences if you change the beneficiary to another member of the family.

Step 1

Obtain and review a copy of your 529 plan to determine the protocol specific to your broker and plan.

Get help changing your legal name. Learn More

Step 2

Call or visit your broker and request a change-of-beneficiary form. Alternatively, you can go to your broker’s website and download the form.

Step 3

Complete the change-of-beneficiary form. Provide your account number, your name and Social Security number, and the current beneficiary’s name and Social Security number. Enter the new beneficiary’s name, date of birth, Social Security number and state of residence. You will also need to explain the relationship between the current beneficiary and the new beneficiary.

Step 4

Return the change-of-beneficiary form to your broker.

Get help changing your legal name. Learn More
How to Name a Trust as Successor Beneficiary of an Inherited IRA

References

Related articles

After a Divorce Ruling, What Is a QDRO?

Difference Between the Primary & the Successor on a Change of Beneficiary

How Do I Change a Last Will & Testament?

Doing the right thing has never been easier.

Related articles

How to Move an IRA to an Irrevocable Trust

Can a Bank Turn Over a Bank Account to a Sole Heir Without Probate?

Can I Move My Kids out of the State of Michigan After My Divorce?

How to List a Charity as Your Beneficiary

Browse by category
Ready to Begin? GET STARTED