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Legislation recently passed in December bringing great news for owners of 529 Savings Plan account holders. This legislation allows account holders to change investment options on their existing plan contributions twice per calendar rather than the previous once per year rule.
Previously, if an account owner had exhausted his or her once-per-year investment change allowance, the only way to change investment options again on existing contributions in the same year was to change the beneficiary of the account, which may not have been desirable or feasible.
Back in 2009, after the market collapsed in 2008, Congress passed a rule allowing 529 account holders the flexibility to change their existing investment options twice per year. This was a short-term rule that was kicked to the curb in 2010.
Many college savers welcome this change and viewed the once-per-year rule to be too rigid.
If we can help you look at 529 Savings Plan options, please give our team a call at (800) 965-5554.
Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. More information about specific 529 plans is available in each issuer’s official statement, which should be read carefully before investing. Also, before investing, consider whether your state offers a 529 plan that provides residents with favorable state tax benefits. As with other investments, there are generally fees and expenses associated with participation in a 529 savings. There is also the risk that the investments may lose money or not perform well enough to cover college costs as anticipated.