Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-15-2007, 01:33 PM
Junior Member
 
Join Date: Mar 2007
Posts: 9
Can I assign any relative as a beneficiary for a 529 plan?

If my son has been awarded a full scholarship for higher college education, can I then assign my 529 Plan to any other relative?

Are there any restrictions to who can be the beneficiary?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-18-2008, 05:35 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
Are there any restrictions to who can be the beneficiary?

A College Sense 529 account has the advantage of having "flexible beneficiary designations". This means that the 529 account balance can be transferred to a new beneficiary at any time as long as the beneficiary is a family member of the original beneficiary. A Family member is defined as being other siblings in the family, cousins,nieces or nephews.

All transfers to the beneficiaries or to other family members would be tax-free to the recipients.

If your relative meets the above designation, then clearly there would be no tax consequences for the transfer of the "529 Plan Account".

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.