Investopedia explains '529 Prepaid Tuition Plan'
If the child who is the account beneficiary dies, decides not to attend college, decides to attend college in a state other than the one in which the plan was established or decides to attend a private college, prepaid tuition credits may be transferred to another child, contributions may be withdrawn, or the in-state value of the prepaid credits may be transferred to an out-of-state or private institution. Parents, relatives and friends are all allowed to contribute to the child’s account, which can be especially helpful to grandparents who want to give money to their grandchildren in a tax-friendly way.
|
