There is, however, a little-known--if inconvenient--escape hatch: Under IRS rules, you can move your investment from one state's plan to another state's plan without penalty, so long as you change the account beneficiary as you do so.
Essentially, an investor can just put money in an age-based investment option within a 529 college savings plan account and the money manager will automatically change the allocation of stocks and bonds to a mix that is less heavy in stocks and more heavy in bonds and cash as college draws near for the account beneficiary.
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The money would be transferred to the beneficiary's bank account which would be linked to a unique identification number.
Separate accounts allow you to tailor the investments inside the account for each beneficiary.
Or, the CARE funds could be transferred to a health savings account that the beneficiary already controls.
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The standard beneficiary form that you fill out when you open the account usually only requires that you name a primary and a secondary beneficiary.
You may name a beneficiary for the assets of the account and continue to contribute to it.
Well before the first aid application is due, a grandparent should transfer ownership of the account to a parent of the beneficiary.
We mean ask your employer or the account custodian for a copy of the beneficiary forms they have on file.
Yet so long as you remain the account's owner, you can change the beneficiary or even take the money back -- if the state plan permits it.
Among the actions an investor can take to generate account activity: increasing or decreasing the amount of the investment in the account, and writing or calling to update an address or beneficiary form or to make an inquiry.
The beneficiary (for example, your child) is the person for whom the account is set up and who will use the money for college.
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Checking-account customers might have to begin paying for the services they consume rather than being a hidden beneficiary of the rents from deposit insurance.
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