How to Choose a 529 College Savings Plan with Help from National Educational Services
If you are a parent or relative, a 529 College Savings Plan may be the perfect option to fund your child’s future educational expenses. 529 plans allow funds to be grown and withdrawn tax-free, only if used for qualifying educational expenses.
National Educational Services advisors are here to help you understand this plan and learn more about opening a 529 college savings account. Fill out the form at the bottom of this page, and we will be in touch with you as soon as possible.
Open the 529 College Savings Account
After choosing the specific 529 College Savings Plan, you must now determine and collect all the information and documentation the plan requires. In each state, there are different documents and information required to open a 529 College Savings Plan, but, at the very least, you will need all the information listed down below.
Personal information such as your Social Security number, address, and birthdate.
Beneficiary Information such as their Social Security number and birthdate.
Additionally, you will likely be asked for supplemental information, which is optional for the most part. Although, one step you should not skip out on is naming a successor account owner. This successor account owner is an individual who will take control of the account in the event of the death of the original account owner.
Taking the extra step and naming a successor account owner prevents legal battles in the event of the original owner’s death. It provides a safety net for your 529 College Savings Account beneficiary.
Deposit Funds to Establish 529 Savings Plan
Once you have completed all the application information, you may mail in the formal application and check, or most plans allow you to complete the application electronically and transfer the funds into your 529 College Savings Plan directly.
When it comes time to select the account type, you will face a few different options such as Individual, UGMA/UTMA, Business, or Trust Account. Most likely, you will be opening an individual account, especially if you are unsure about what the other accounts entail.
It is essential to understand that most 529 College Savings Plans do not allow joint ownership. It means that unless you have an account that states it has joint ownership, your spouse will not have access to the account unless they have a Power of Attorney.
Contact National Educational Services for Help Setting Up 529 College Savings Plan
While this process can be challenging, it is comforting to know you are not alone in establishing a college savings plan for your children.
Contact National Educational Services today and a representative will guide you through the process and make setting up a 529 College Savings Plan as easy as can be.