529 Plan Account Owner
May 5th, 2007
Question: Is it possible to have more than 1 529 Plan for your child?
My mother-in-law works at a bank and she opened 529 plans up for my children (along with all of her other grandkids). She puts a little bit in each month.
I would like to put money into my children’s accounts; however, I am just a little upset that my name isn’t on any of the accounts. She listed her name and my husbands name as owners on each of the accounts. She is a very nice woman and I appreciate that she has done this for our children; however, when it comes to some things she is a bit controlling. Both my husband and I work and are responsible people and I would like to have some control over my children’s finances. I hate to be so petty; however, I know how she is (controlling) and would like to avoid any future problems and just open my own 529 plans for my children. Is it alright to have more than 1 529 Plan for each child?
Answer: Yes this is OK and also common. Anybody can open a 529 Plan for a child. Rules do vary slightly from state to state. For the most part IMHP as long as the Grandparents and you (the parents) live in the same state, you could both contribute to the childs plan. You just need to look into the tax recourse.. ie: would it be a deduction for the both of you? What is the limit both parties could contribute before the tax forgiveness stops? You should probably talk to a financial counselor to figure out all the little loop holes. A 529 Plan is nothing to mess with. If your child is 1 now.. Just think of what college will cost 17 years from now. You’ll need every penny you could get. Make sure Uncle Sam (and his front pocket firms) keeps their grubby little hands out.
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