Share This Checklist

How to Open a 529 Plan Checklist

Use this checklist to learn how to open a 529 Plan, a tax-advantaged way to save for education expenses, and ensure you’re making the best choices for your family.

  • Definition: Familiarize yourself with what a 529 plan is—a tax-advantaged savings plan designed to encourage saving for future education costs.
  • Types of Plans: Learn about the two main types: College Savings Plans (which invest your contributions) and Prepaid Tuition Plans (which allow you to pay for future tuition at today’s rates).

  • State Plans: Investigate your state’s 529 plan offerings, as many states offer tax benefits for residents who invest in their own state plan.
  • Investment Choices: Review the investment options available within the plans, such as age-based portfolios or static investment options.

  • Education Goals: Decide how much you want to contribute and what your educational savings goals are (e.g., funding college for a child or grandchild).
  • Funding Amount: Assess how much you can afford to contribute initially and on an ongoing basis.

  • Personal Information: Prepare your personal details, including your Social Security number, address, and date of birth.
  • Beneficiary Information: Collect the same information for the child or beneficiary for whom the 529 plan is being established.

  • Select a Plan: Choose the 529 plan that best meets your needs based on your research and goals.
  • Check for Fees: Review any fees associated with the plan, including management fees and any account maintenance fees.

  • Application Process: Complete the application to open your 529 plan account, which can typically be done online.
  • Funding the Account: Decide how to fund your 529 plan (lump sum, monthly contributions, or automatic transfers from a bank account).

  • Automatic Deposits: Consider setting up automatic contributions to make regular savings easier.
  • Contribution Schedule: Decide on the frequency of contributions (monthly, quarterly, annually).

  • Future Planning: If desired, designate a successor owner for the account in case you are unable to manage it in the future.

  • Documentation: Keep all account opening documents and statements organized for future reference.
  • Monitor Performance: Regularly review the account’s performance and investment options to ensure they align with your goals.

  • Qualified Expenses: Familiarize yourself with what expenses are considered qualified for tax-free withdrawals (tuition, fees, room and board, books).
  • Tax Implications: Be aware of any tax implications for non-qualified withdrawals.

Save Time With Checklists

Buried in Work offers several checklists to save you time.

Get The Checklists

Leave Your Heirs The Gift Of Organization With a CLEAR Kit

Did you know?

The average estate takes 570 hours to administer.

Other Useful Checklists

Related Content