Multiple 529 accounts

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Topic Author
ssn
Posts: 14
Joined: Sat Jan 25, 2020 10:15 pm

Multiple 529 accounts

Post by ssn »

Hello,

I have a 529 plan for our son with Vanguard, I am the owner, he is beneficiary. At the time of opening this account, our state (MA) did not give any state tax benefits. Starting in 2017, the state is giving 2K state tax benefit only for the plans which are opened in state affiliated agency (The UFund plan with Fidelity).

My wife has an account with Fidelity (sole owner). We are thinking of opening another 529 plan with Fidelity with she being the owner and our son being beneficiary so that we can avail the state tax benefit (something than nothing). I do not want to immediately rollover existing Vanguard 529 plan. I would like to wait for some time and then decide.

I know that 529 plan cannot have joint ownership so this is also not an option. Is there any issue with 2 different owners for a beneficiary down the line i.e. at the time of college admission?

Thanks in advance.
lakpr
Posts: 6746
Joined: Fri Mar 18, 2011 9:59 am

Re: Multiple 529 accounts

Post by lakpr »

Not a problem at all to have multiple 529 accounts. We have them too.

In NJ, there is no state tax benefit but if you deposit $4k in the state 529 plan (NJ BEST) and let it be in the plan, you get a $250 "scholarship" for each year the money remains in the plan for a maximum of $1500 - only if the student attends school in state

Therefore we put in $4000 in each of our kids names to "reserve" the scholarship, and rest of their educational expenses are being saved in NY state plan.
Topic Author
ssn
Posts: 14
Joined: Sat Jan 25, 2020 10:15 pm

Re: Multiple 529 accounts

Post by ssn »

Great, thank you very much.
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