I’m pretty sure the answer is yes but just to confirm:
I have a 529 account that is all my money for my only child who is 1.5 years old. I want to front load it with money to make the most of the investment longevity. If I later have a second kid, can I use part of the money in another 529 for the second kid?
I know you can change 529 beneficiaries- the issue is splitting the money among multiple children if I have another kid, rather than changing the beneficiary of the account with the total sum intact.
Just for clarification – this is all my money not gifts to my child from other people and I am high income so anticipate being able to pay 100% for any college for multiple kids. Just in case anyone was concerned I’m considering ripping off a teen’s college fund or something.
Yes you can open up a new account when the new child is born.
Yes you can transfer from one 529 to another 529.
Yes, you can split it by doing a partial rollover into a new 529 that has a different beneficiary.
> Just in case anyone was concerned I’m considering ripping off a teen’s college fund or something.
The money in a 529 is considered your money, not your kids’. You don’t have to feel like you are ripping them off if you use it for someone else. You can change beneficiaries at any time.
You can even name yourself if your kids turn out to be ungrateful little shits too dumb to go to college, and you want to take some classes. (I am kidding, mostly. My kids are older than your little bundles of joy, though….)
If your kids are close enough that more than one will be in college at the same time, though, you probably want to have separate accounts so you can pull from both without changing beneficiaries or rolling over. But your contribution limit to get any state tax deduction applies over all accounts.
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