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LearnFAQCollege Planning

Can I change the beneficiary on a 529 plan?

Answer

Yes, and it's one of the 529's most flexible features. As the account owner, you can change the beneficiary to another "member of the family" of the current beneficiary — including a sibling, stepsibling, parent, cousin, niece, nephew, spouse, or even yourself — with no tax consequences, as long as the new beneficiary qualifies. This is how families redeploy unused funds: if one child gets a scholarship or skips college, you redirect the money to another child or use it for grad school. There's no penalty and usually just a simple form with your plan administrator. One caution: changing to a beneficiary in a younger generation (say, from your child to a future grandchild) can trigger gift-tax considerations. For same-generation swaps, it's straightforward and free.

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