rk911
Thinks s/he gets paid by the post
We’re considering opening a 529 plan for our friend’s
child and we ‘d like it to be a surprise. How do we/can this be done?
child and we ‘d like it to be a surprise. How do we/can this be done?
When do you want it to be a surprise?…
The child is not a blood relative and I’m thinking to provide the surprise gift now.
We’re considering opening a 529 plan for our friend’s
child and we ‘d like it to be a surprise. How do we/can this be done?
You can open an account with yourself as both the owner and beneficiary and fund it. When you want to give the account to the child, you submit a change of beneficiary form with the child's name and SSN. You would still own the account and would manage the withdrawals. If you no longer want to own the account, you can probably transfer it to the child's parent, but you should verify that with whichever state plan you're going to use before you open the account.
Also some states have plans that don't require residency. We used the Alaska plan even though we didn't live there because it had better investment options and there was no tax deduction for using our own state's plan.
The FAFSA is changing in Oct 2023.
Grandparent controlled 529 distributions are no longer reported.