Signing Up, Fund Selection & Distribution Logistics
You will need names, social security numbers, and addresses.
Logistics of 529 plan sign up are quite easy as long as you have:
- Your email
- Your (the Owner’s) Social Security number
- Your physical address, including state of residence
- The Beneficiary’s Social Security number
- The Beneficiary’s physical address
Once you have made one account, the website should hold and autopopulate your owner information, making any further new account formation faster and easier.
Find the Name of your home state plan in Appendix 1 of this book and go to the website. Evaluate any state tax opportunities for your contributions, the fund fees, account minimum balance needed to start, and any advisor fees. As you have time, compare fees and website ease of use to a top plan such as Utah, Alaska, Illinois, Massachusetts, or Pennsylvania.
Most of the time, your own state should be one of the best. Decide which state plan you will use and go to its website. Remember that you can rollover an account to another state one time per year, so this decision is important but not final.
You will create an account and password the first time in.
Enter Social Security numbers and addresses.
Fund the account with the minimum amount until you have looked through the fund selections (see Fund Selection point). Some states allow a $0 minimum, so you could wait to fund the account.
You should consider linking your bank account with the plan for future easy recurring or one-time deposits.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.