Because of the great tax advantages that these accounts provide, coupled with staggering growth in tuition costs, many people wonder how soon they can start funding 529s. We’ve had a growing number of clients even ask if they can fund a 529 for future children or grandchildren.
In short, yes you can.
A 529 account requires a living beneficiary with a Social Security number. However, 529 account owners can change the beneficiary at any time. Since your child or grandchild is not born yet, you can open a 529 account and register yourself as the beneficiary, then change the beneficiary when the baby is born and is issued a Social Security number.
As with any financial decision, you should evaluate whether this strategy is right for you through the lens of a larger financial plan.
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or strategies may be appropriate for you, consult your financial advisor prior to investing. No strategy assures success or protects against loss.
You should consider the investment objectives, risks, charges and expenses of any 529 Plan carefully before investing. This and other information is contained in the 529 Plan Disclosure Document and official statement, which should be read carefully.