529

Updates

October 8, 2024: it makes sense to have one "529" for all children -- it simplifies everything! Once the first child no longer needs funds from the existing "529", the beneficiary can be changed for the next child. With twins, it might make sense to have two "529's" simply because the need for funds might occur at same time and two "529's" might make it easier.

Original Post 

Personal investment links here:

• personal investing by the grandparents.
• the "529" page.

Philosophy:

• most important, Sophia, right now, because she is already ten years old
• next: Judah and Lev, four years old
• then: Arianna, for post-graduate education
• finally: Olivia, just in case

Note: 

• "529's" are incredibly flexible
• a beneficiary can be an owner
• only one "529" in one state for same owner / beneficiary
  
• if an owner has a "529" in one state for a certain beneficiary, a second "529" with same owner / beneficiary must be from a second state  
• an owner can have multiple 529 plans for different beneficiaries, meaning you can open separate 529 accounts for each of your children, even though a single 529 plan can only have one beneficiary at a time; you cannot name multiple beneficiaries on a single 529 account. 
• owner and beneficiary can be changed at any time with a simple signature by the owner
• one "529" for all children? Interesting concept. Link here.
  
• after a "529" has been in existence for 15 years, up to $35,000 can be converted into an Roth IRA but requires active income on the part of the beneficiary, and annual contributions within IRS rules
• if the owner is the grandparent, the “529” does not affect Federal financial aid;
• if folks understand the concept of the fungibility of cash it's hard to think of a better passive investment for many grandparents wishing to provide support for grandchildren
  

Grandparents' "529" allocation for the grandchildren:

• Sophia: 40%
• Judah: 20%
• Levi: 20%
• Arianna: 20%
• Olivia: 0%. Monthly stipend of $500 instead.

As of July 16, 2024:

• Judah: 
• parents have "529" established for Judah. Grandparents send contributions to the parents for his "529."
• one owner, one beneficiary, state: Laura, Judah, Schwab/Kansas program
• Levi: 
• parents have "529" established for Judah. Grandparents send contributions to the parents for his "529."
• one owner, one beneficiary, state: Laura, Levi, Schwab/Kansas program
  
• Sophia: 
•  "529" established by grandparents; contributions began in CY2024
• one owner, one beneficiary, state: Bruce, Sophia, Schwab/Kansas program
  
• Arianna: 
• no "529" established by grandparents yet. Would like to have that done by end of CY2024.
• Olivia: 
• no "529" established by grandparents yet. Using funds that would go to her "529" for living expenses at Stanford, but would like to start a "529" if for no other reason than the Roth-conversion benefit. Monthly stipend: $500.