[Sarah]

I’m planning on opening a 529 for my granddaughter. I have no surviving children and no additional grandchildren.

God forbid, if something were to happen to her, would I be able to transfer the funds back to myself.

If she chooses not to further her education (I have every expectation she will but there are negative influences in her life), she can roll the funds into an IRA, correct??

[Bill]

Yes, you can change the beneficiary at any time. And under the new law, she could actually use the 529 to fund a Roth IRA up to $35k if she doesn’t end up needing it for college.

[Berlinda]

No worries here. The way it works is that once you open the 529, you remain the owner, with your granddaughter as the beneficiary.

It’s the beneficiary that can be changed—you could even decide to use some for yourself.

You are correct about the IRA, but there are waiting times and dollar limitations that you need to look into.

[Author]

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