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There are no time restrictions for using 529 college savings plan accounts, so if your beneficiary does not go to college right away, you can keep the money in your account to use at a later date. The funds may also be used for certain vocational schools or apprenticeship programs. Alternatively, you have the option to change the beneficiary on the account, or you may request a nonqualified withdrawal, which may be subject to federal and state income taxes and a 10% federal penalty (on the earnings portion only).

You can roll over unused 529 savings to a Roth IRA maintained for the same account beneficiary with a Rollover to Roth IRA Form. The 529 plan account must have been maintained for at least 15 years, and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit, and there is an aggregate limit of $35,000.

Please read and/or download the Plan Disclosure Document for additional information. If you have questions about your specific situation, please speak with a tax professional.

Although it is not required, it is strongly recommended that you designate a successor account owner or custodian to take over the account in the event that you pass away. A successor can be added when the account is set up or at a later date either by adding a successor online or by completing the appropriate section of the Account Information Change Form. For a designation or change of a successor to be valid, it must be received and processed by the plan prior to the account owner's death.

Yes, you can change your beneficiary or transfer a portion of your investment to a different beneficiary at any time either logging in to your account online or with a Transfer Form, as long as the receiving account is already established with the same account owner, then the request can be made by phone. In order for the transaction to be considered a tax-free transfer by the IRS, the new beneficiary must be a member of the previous beneficiary's family, as defined by the Internal Revenue Code, and be a member of the same generation as the previous beneficiary. If the new beneficiary belongs to a generation two or more levels below the original beneficiary, or if the beneficiaries are not related, additional taxes may apply. Furthermore, gift taxes could apply when the beneficiary is changed, depending on the amount being transferred to the new beneficiary.

Family members include:

• Son, daughter, stepchild, foster child, adopted child, or a descendant of any of them
• Brother, sister, stepbrother, or stepsister
• Father or mother or ancestor of either
• Stepfather or stepmother
• Niece or nephew
• Aunt or uncle
• Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
• The spouse of the beneficiary or of any individual listed above
• A first cousin of the beneficiary

Yes, you can. To get a head start on your expected child's account, you can open an account designating yourself or another family member as the beneficiary (a Social Security number (SSN) is required for the person being named as a beneficiary). Once your child has received their SSN, you may change the beneficiary on the account.

To avoid tax consequences, it is important that the initial beneficiary be a family member of the expected child, as defined by the IRS.

Yes, multiple accounts can be opened for one beneficiary. For example, a parent and a grandparent can each open an account for the same beneficiary. However, the maximum combined balance for a beneficiary across all 529 accounts sponsored by the Education Trust of Alaska is $550,000. Once this limit is reached, no additional contributions will be accepted, but earnings may still accrue.

Yes. You can change the account owner at any time by completing the Transfer Form. The relinquishing account owner must complete the form and mail it to the address indicated on the document, and the new account owner must have an open account for the beneficiary. If the new account owner does not currently have a T. Rowe Price College Savings Plan account for the beneficiary, they must open an account prior to the account owner change. The new account may be opened online, or you may complete the Account Application Form and mail it along with the Transfer Form.

Yes. To set up this service, please follow the steps listed below:

• Log in
• Click Profile & Documents
• Click Change Payroll Instructions
• Follow the instructions and select “Get Form.” The system will generate a form for you with all of the information that you need to provide.

Provide the new form to your employer's Human Resources or Payroll Department to complete your direct deposit setup. Based on your payroll schedule, your employer should be able to inform you when your contributions will begin to be deducted.

Before you initiate the rollover process, we recommend contacting the current provider/manager to verify the funds are eligible for a rollover to the T. Rowe Price College Savings Plan and what their requirements are for processing a rollover.

Once you have confirmed your funds are eligible for a rollover:

• Open your T. Rowe Price College Savings Plan account.
• Complete the Rollover Form.
• Mail the completed Rollover Form to the address listed on the form. Your rollover should be processed and completed within the next few weeks.

Rollovers are generally tax-free, and rollovers from another 529 plan are limited to once every 12 months for the same beneficiary. If the beneficiary changes, there is no limit on rollovers between 529 plans. You can roll over funds between 529 plans anytime for a different beneficiary as long as that beneficiary is a member of the previous beneficiary's family.

Additional details can be found in our Plan Disclosure Document.

The maximum account balance for a beneficiary across all portfolios and accounts is $550,000. It is acceptable for earnings (but not contributions) to cause the total account value to go over this amount. This limit includes contributions made to all qualified tuition programs sponsored by the Education Trust of Alaska for the beneficiary.

If your beneficiary has leftover savings, you can:

• Request a nonqualified withdrawal.
• Change the beneficiary to an eligible family member.
• Keep your savings in the account in anticipation of future education expenses, such as graduate school.
• Roll over your savings into a beneficiary-owned Roth IRA. The SECURE 2.0 Act allows for a rollover of leftover 529 savings in a 529 college savings plan account to a Roth IRA maintained for the same account beneficiary with a Rollover to Roth IRA Form. The 529 plan account must have been maintained for at least 15 years, and only contributions (and accompanying earnings) made more than five years prior can be rolled over. The amount eligible for rollover each year cannot exceed the IRA contribution limit, and there is an aggregate limit of $35,000. Please read and/or download the Plan Disclosure Document for additional information. If you have questions about your specific situation, please speak with a tax professional.

If you are the account owner and your child is the beneficiary of the 529 account, the money you have saved is typically considered a parental asset, not a student asset. In that case, the family can expect the student's need-based aid package to be reduced by up to 5.64% of the asset's value.

Starting in the 2024-2025 school year, distributions from a grandparent-owned 529 account will no longer count as income to the student on the Free Application for Federal Student Aid (FAFSA). For more information, visit studentaid.gov/h/apply-for-aid/fafsa.