Series 51: Beneficiaries

Taken from our Series 51 Online Guide

Beneficiaries

Contributors designate the initial beneficiary. The beneficiary may be anyone who plans to attend an eligible post-secondary educational institution. The beneficiary cannot be an unborn child. In other words, the beneficiary must be a living person at the time that the account is set up and must have a valid Social Security number.

Eligible educational institutions include any college, university, technical or vocational school, or any other educational institution that is able to participate in a student aid program administered by the U.S. Department of Education. Up to $10,000 may be used at an elementary or secondary school. There is no age limit on the beneficiary, and the contributor does not have to be related to the beneficiary. Contributors can even set up a 529 plan for themselves.

Contributors can name subsequent beneficiaries if the original beneficiary does not need the money or is taken off the plan. In this case, the contributions will be rolled over to the subsequent beneficiary with no tax consequences, as long as the subsequent beneficiary is a qualified member of the beneficiary’s family. Qualified family members include:

  • Spouse
  • Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them
  • Brother, sister

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