529 Plan and College Savings

Question: Can a couple invest money in a 529 Plan long before a child is born? Any other options?

While I am 31, not married, and without kids, I wonder if a person can start investing money in this plan prior to having a child. A little unsure. As my boyfriend and I are making serious moves towards marriage and having children, I have began to wonder what financial moves can we take early on (once we’re married, of course).

http://money.aol.com/top5/investing/money-moves-for-your-forties-1

Wow! Thanks for such a thorough, quick answer Finance Gal!

Answer: Yes, you can open the 529 for you listing yourself as the account owner and beneficiary, and then change the beneficiary when you have a child. Generally the account owner can change the designated beneficiary at any time.
There are no tax consequences to changing the designated beneficiary as long as
1) the new beneficiary is a member of the family of the old beneficiary
2) for GST tax purposes, the new beneficiary is assigned to the same generation as (or a higher generation than) the old beneficiary.
Member of the family is defined to mean:
A son or daughter, or a descendant of either;
A stepson or stepdaughter;
A brother, sister, stepbrother, or stepsister;
The father or mother, or an ancestor of either;
A stepfather or stepmother;
A cousin;
A son or daughter of a brother or sister;
A brother or sister of the father or mother;
A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law; or
The spouse of the designated beneficiary or the spouse of any individual described in one through nine above.

Hope that helps!

BOB LAZAR GENE HUFF JOHN LEAR !! UFO S AREA 51 !! 11 15 2009 2

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