Can I start 529 plans for my niece & nephew without my sibling knowing?
If I wanted to start a 529 plan for them now to give to them at the end of their high school career as a surprise to both them and their parents, is it possible to do so?
My niece and nephew are both under two years old, so I would have a significant amount of time to make small pre-tax contributions that would add up to a first semester / year of college for them by the time they're ready to attend. I would like to have this be a surprise to my sister and brother-in-law as well just in case plans change (and to keep the surprise factor), but I'm not sure of their role/requirements when starting the 529 plan.
- Do I need their authorization to initiate the plan?
- Is there an alternative plan that I could start to achieve this?
united-states 529-plan
edited 5 hours ago
mkennedy
783611
asked 8 hours ago
Lil' Bits
1555
add a comment |
If I wanted to start a 529 plan for them now to give to them at the end of their high school career as a surprise to both them and their parents, is it possible to do so?
My niece and nephew are both under two years old, so I would have a significant amount of time to make small pre-tax contributions that would add up to a first semester / year of college for them by the time they're ready to attend. I would like to have this be a surprise to my sister and brother-in-law as well just in case plans change (and to keep the surprise factor), but I'm not sure of their role/requirements when starting the 529 plan.
- Do I need their authorization to initiate the plan?
- Is there an alternative plan that I could start to achieve this?
united-states 529-plan
edited 5 hours ago
mkennedy
783611
asked 8 hours ago
Lil' Bits
1555
3
I personally would reveal the accounts the year before AKA beginning of their junior year of high school. The money could change where they decide to go to college and/or their financial aid packages.
– mkennedy
7 hours ago
add a comment |
If I wanted to start a 529 plan for them now to give to them at the end of their high school career as a surprise to both them and their parents, is it possible to do so?
My niece and nephew are both under two years old, so I would have a significant amount of time to make small pre-tax contributions that would add up to a first semester / year of college for them by the time they're ready to attend. I would like to have this be a surprise to my sister and brother-in-law as well just in case plans change (and to keep the surprise factor), but I'm not sure of their role/requirements when starting the 529 plan.
- Do I need their authorization to initiate the plan?
- Is there an alternative plan that I could start to achieve this?
united-states 529-plan
edited 5 hours ago
mkennedy
783611
asked 8 hours ago
Lil' Bits
1555
If I wanted to start a 529 plan for them now to give to them at the end of their high school career as a surprise to both them and their parents, is it possible to do so?
My niece and nephew are both under two years old, so I would have a significant amount of time to make small pre-tax contributions that would add up to a first semester / year of college for them by the time they're ready to attend. I would like to have this be a surprise to my sister and brother-in-law as well just in case plans change (and to keep the surprise factor), but I'm not sure of their role/requirements when starting the 529 plan.
- Do I need their authorization to initiate the plan?
- Is there an alternative plan that I could start to achieve this?
united-states 529-plan
united-states 529-plan
edited 5 hours ago
mkennedy
783611
asked 8 hours ago
Lil' Bits
1555
edited 5 hours ago
mkennedy
783611
asked 8 hours ago
Lil' Bits
1555
edited 5 hours ago
mkennedy
783611
edited 5 hours ago
mkennedy
783611
edited 5 hours ago
mkennedy
783611
783611
asked 8 hours ago
Lil' Bits
1555
asked 8 hours ago
Lil' Bits
1555
asked 8 hours ago
Lil' Bits
1555
1555
3
I personally would reveal the accounts the year before AKA beginning of their junior year of high school. The money could change where they decide to go to college and/or their financial aid packages.
– mkennedy
7 hours ago
add a comment |
3
I personally would reveal the accounts the year before AKA beginning of their junior year of high school. The money could change where they decide to go to college and/or their financial aid packages.
– mkennedy
7 hours ago
3
3
I personally would reveal the accounts the year before AKA beginning of their junior year of high school. The money could change where they decide to go to college and/or their financial aid packages.
– mkennedy
7 hours ago
I personally would reveal the accounts the year before AKA beginning of their junior year of high school. The money could change where they decide to go to college and/or their financial aid packages.
– mkennedy
7 hours ago
add a comment |
2 Answers
2
active
oldest
votes
You can start a 529 plan with yourself as the beneficiary, and you can later change the beneficiary to a qualified family member without tax implications. Nieces and nephews count as qualified family members.
answered 8 hours ago
Hart CO
26.1k16278
Be aware there may be gift tax implications if one starts with the beneficiary as one's self and then transfers to a niece and nephew.
– Morrison Chang
2 hours ago
@MorrisonChang Any reference for that? Nieces and nephews count as qualified family members by my reading.
– Hart CO
1 hour ago
1
Niece and nephews count as qualified family members, but at least for New York State Direct Plan Section 7, page 35 of the agreement,If you change your Beneficiary or transfer money to an Account for another Beneficiary, you may be subject to gift tax if the new Beneficiary is: • Of a younger generation than your Beneficiary being replaced; or • Not a Member of the Family of the current Beneficiary.So if the adult Uncle/Aunt is the both owner and the beneficiary there appears to be gift tax issues to be managed.
– Morrison Chang
1 hour ago
@MorrisonChang Nice, thanks for reference.
– Hart CO
18 mins ago
add a comment |
That's a really nice thing that you're planning to do for your niece and nephew, and it is possible to do!
You do need to provide a social security number for the beneficiary of the 529 plan, so to name your niece and nephew as beneficiaries, you will need to get their social security numbers. If you can get these without tipping off the parents, great! Otherwise, you can always change the beneficiary of a 529 plan. You can start the plans with yourself as beneficiary and then get your niece and nephew's SSNs and change the beneficiary to be them after they graduate.
answered 8 hours ago
Daniel
588315
add a comment |
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2 Answers
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2 Answers
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votes
You can start a 529 plan with yourself as the beneficiary, and you can later change the beneficiary to a qualified family member without tax implications. Nieces and nephews count as qualified family members.
answered 8 hours ago
Hart CO
26.1k16278
Be aware there may be gift tax implications if one starts with the beneficiary as one's self and then transfers to a niece and nephew.
– Morrison Chang
2 hours ago
@MorrisonChang Any reference for that? Nieces and nephews count as qualified family members by my reading.
– Hart CO
1 hour ago
1
Niece and nephews count as qualified family members, but at least for New York State Direct Plan Section 7, page 35 of the agreement,If you change your Beneficiary or transfer money to an Account for another Beneficiary, you may be subject to gift tax if the new Beneficiary is: • Of a younger generation than your Beneficiary being replaced; or • Not a Member of the Family of the current Beneficiary.So if the adult Uncle/Aunt is the both owner and the beneficiary there appears to be gift tax issues to be managed.
– Morrison Chang
1 hour ago
@MorrisonChang Nice, thanks for reference.
– Hart CO
18 mins ago
add a comment |
You can start a 529 plan with yourself as the beneficiary, and you can later change the beneficiary to a qualified family member without tax implications. Nieces and nephews count as qualified family members.
answered 8 hours ago
Hart CO
26.1k16278
Be aware there may be gift tax implications if one starts with the beneficiary as one's self and then transfers to a niece and nephew.
– Morrison Chang
2 hours ago
@MorrisonChang Any reference for that? Nieces and nephews count as qualified family members by my reading.
– Hart CO
1 hour ago
1
Niece and nephews count as qualified family members, but at least for New York State Direct Plan Section 7, page 35 of the agreement,If you change your Beneficiary or transfer money to an Account for another Beneficiary, you may be subject to gift tax if the new Beneficiary is: • Of a younger generation than your Beneficiary being replaced; or • Not a Member of the Family of the current Beneficiary.So if the adult Uncle/Aunt is the both owner and the beneficiary there appears to be gift tax issues to be managed.
– Morrison Chang
1 hour ago
@MorrisonChang Nice, thanks for reference.
– Hart CO
18 mins ago
add a comment |
You can start a 529 plan with yourself as the beneficiary, and you can later change the beneficiary to a qualified family member without tax implications. Nieces and nephews count as qualified family members.
answered 8 hours ago
Hart CO
26.1k16278
You can start a 529 plan with yourself as the beneficiary, and you can later change the beneficiary to a qualified family member without tax implications. Nieces and nephews count as qualified family members.
answered 8 hours ago
Hart CO
26.1k16278
answered 8 hours ago
Hart CO
26.1k16278
answered 8 hours ago
Hart CO
26.1k16278
answered 8 hours ago
Hart CO
26.1k16278
26.1k16278
Be aware there may be gift tax implications if one starts with the beneficiary as one's self and then transfers to a niece and nephew.
– Morrison Chang
2 hours ago
@MorrisonChang Any reference for that? Nieces and nephews count as qualified family members by my reading.
– Hart CO
1 hour ago
1
Niece and nephews count as qualified family members, but at least for New York State Direct Plan Section 7, page 35 of the agreement,If you change your Beneficiary or transfer money to an Account for another Beneficiary, you may be subject to gift tax if the new Beneficiary is: • Of a younger generation than your Beneficiary being replaced; or • Not a Member of the Family of the current Beneficiary.So if the adult Uncle/Aunt is the both owner and the beneficiary there appears to be gift tax issues to be managed.
– Morrison Chang
1 hour ago
@MorrisonChang Nice, thanks for reference.
– Hart CO
18 mins ago
add a comment |
Be aware there may be gift tax implications if one starts with the beneficiary as one's self and then transfers to a niece and nephew.
– Morrison Chang
2 hours ago
@MorrisonChang Any reference for that? Nieces and nephews count as qualified family members by my reading.
– Hart CO
1 hour ago
1
Niece and nephews count as qualified family members, but at least for New York State Direct Plan Section 7, page 35 of the agreement,If you change your Beneficiary or transfer money to an Account for another Beneficiary, you may be subject to gift tax if the new Beneficiary is: • Of a younger generation than your Beneficiary being replaced; or • Not a Member of the Family of the current Beneficiary.So if the adult Uncle/Aunt is the both owner and the beneficiary there appears to be gift tax issues to be managed.
– Morrison Chang
1 hour ago
@MorrisonChang Nice, thanks for reference.
– Hart CO
18 mins ago
Be aware there may be gift tax implications if one starts with the beneficiary as one's self and then transfers to a niece and nephew.
– Morrison Chang
2 hours ago
Be aware there may be gift tax implications if one starts with the beneficiary as one's self and then transfers to a niece and nephew.
– Morrison Chang
2 hours ago
@MorrisonChang Any reference for that? Nieces and nephews count as qualified family members by my reading.
– Hart CO
1 hour ago
@MorrisonChang Any reference for that? Nieces and nephews count as qualified family members by my reading.
– Hart CO
1 hour ago
1
1
Niece and nephews count as qualified family members, but at least for New York State Direct Plan Section 7, page 35 of the agreement,
If you change your Beneficiary or transfer money to an Account for another Beneficiary, you may be subject to gift tax if the new Beneficiary is: • Of a younger generation than your Beneficiary being replaced; or • Not a Member of the Family of the current Beneficiary. So if the adult Uncle/Aunt is the both owner and the beneficiary there appears to be gift tax issues to be managed.– Morrison Chang
1 hour ago
Niece and nephews count as qualified family members, but at least for New York State Direct Plan Section 7, page 35 of the agreement,
If you change your Beneficiary or transfer money to an Account for another Beneficiary, you may be subject to gift tax if the new Beneficiary is: • Of a younger generation than your Beneficiary being replaced; or • Not a Member of the Family of the current Beneficiary. So if the adult Uncle/Aunt is the both owner and the beneficiary there appears to be gift tax issues to be managed.– Morrison Chang
1 hour ago
@MorrisonChang Nice, thanks for reference.
– Hart CO
18 mins ago
@MorrisonChang Nice, thanks for reference.
– Hart CO
18 mins ago
add a comment |
That's a really nice thing that you're planning to do for your niece and nephew, and it is possible to do!
You do need to provide a social security number for the beneficiary of the 529 plan, so to name your niece and nephew as beneficiaries, you will need to get their social security numbers. If you can get these without tipping off the parents, great! Otherwise, you can always change the beneficiary of a 529 plan. You can start the plans with yourself as beneficiary and then get your niece and nephew's SSNs and change the beneficiary to be them after they graduate.
answered 8 hours ago
Daniel
588315
add a comment |
That's a really nice thing that you're planning to do for your niece and nephew, and it is possible to do!
You do need to provide a social security number for the beneficiary of the 529 plan, so to name your niece and nephew as beneficiaries, you will need to get their social security numbers. If you can get these without tipping off the parents, great! Otherwise, you can always change the beneficiary of a 529 plan. You can start the plans with yourself as beneficiary and then get your niece and nephew's SSNs and change the beneficiary to be them after they graduate.
answered 8 hours ago
Daniel
588315
add a comment |
That's a really nice thing that you're planning to do for your niece and nephew, and it is possible to do!
You do need to provide a social security number for the beneficiary of the 529 plan, so to name your niece and nephew as beneficiaries, you will need to get their social security numbers. If you can get these without tipping off the parents, great! Otherwise, you can always change the beneficiary of a 529 plan. You can start the plans with yourself as beneficiary and then get your niece and nephew's SSNs and change the beneficiary to be them after they graduate.
answered 8 hours ago
Daniel
588315
That's a really nice thing that you're planning to do for your niece and nephew, and it is possible to do!
You do need to provide a social security number for the beneficiary of the 529 plan, so to name your niece and nephew as beneficiaries, you will need to get their social security numbers. If you can get these without tipping off the parents, great! Otherwise, you can always change the beneficiary of a 529 plan. You can start the plans with yourself as beneficiary and then get your niece and nephew's SSNs and change the beneficiary to be them after they graduate.
answered 8 hours ago
Daniel
588315
answered 8 hours ago
Daniel
588315
answered 8 hours ago
Daniel
588315
answered 8 hours ago
Daniel
588315
588315
add a comment |
add a comment |
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I personally would reveal the accounts the year before AKA beginning of their junior year of high school. The money could change where they decide to go to college and/or their financial aid packages.
– mkennedy
7 hours ago