Since they were young, you’ve been saving for your children’s future college and career training with Ohio 529 CollegeAdvantage.
But as your child finishes up their senior year, they may decide that they don’t want to pursue an education after high school – whether at a trade school, certificate or credential program, two-year community college, or a traditional four-year college or university.
So, now what do you do with your college and career training savings plan? With Ohio 529, you always have options, including transferring the 529 account to a new beneficiary, who must be a member of the family, anyone related to the family through blood, marriage, or adoption.
How to change your beneficiary online
Please note, if you have or have had Fifth Third 529 CDs or a 529 Savings Account as part of your Ohio 529 account, you cannot do the beneficiary change online. In addition, if your account owner is a Trust, this cannot be accomplished online. Please see below instructions for completing the paper form.
The first step is to create a new Ohio 529 account for the new beneficiary, if one is not already established one under your account ownership. Ohio 529 has simplified the process to four easy steps.
After the new account has been created, access your current Ohio 529 accounts. If you are on a computer, you will find it on the left-hand side of the screen under the tool bar. If you are on your mobile phone, the access will be under “Transactions.” For both methods, you will then click on “Transfer to another beneficiary.”
Once you are on the page with all your active accounts, please read the “Keep in mind” section to learn important information. Once done, hit next. On the following screen, you will decide to either transfer the full balance in the Ohio 529 account or a partial balance. If you opt for a partial amount, you will have to choose the dollar amount for the transfer.
The next step will take you to all your active Ohio 529 accounts so you can select the new beneficiary or beneficiaries into which you can transfer the 529 funds. If you have one other Ohio 529 account, you will transfer 100% of the transfer amount to the other account. If you have multiple 529s, you will divide the transfer amount between the accounts. Afterwards, you’ll review all the information then hit done to start the transfer process.
How to change your beneficiary via paper form
As mentioned above, if you have or have had Fifth Third 529 CDs or 529 Savings Account(s) as part of your Ohio 529 account, you cannot do the beneficiary change online. In addition, if your account owner is a Trust, this cannot be accomplished online. Instead, you will have to fill out the paper Beneficiary Change Form. It can be downloaded and printed from the form section at CollegeAdvantage.com.
Also, if you currently have Fifth Third 529 CDs when you choose to transfer the account to another beneficiary, any CDs in the account will be liquidated and a penalty for early withdrawal may be applied. As part of the form, you have the option of choosing the investments for the new beneficiary if an account doesn’t already exist as part of the transfer. If an account already exists for the new beneficiary, the transfer will be based on the future allocations already established on the account.
To start the transfer process, you will need to fill in the existing account information, including your current beneficiary’s Social Security or Taxpayer Identification number on the paper Beneficiary Change Form.
For the second step, you will need to add your new beneficiary’s information including name, Social Security or Taxpayer Identification number, and the current beneficiary’s relationship to the new beneficiary.
Next, you will decide how much you would like to transfer from your original beneficiary to your new beneficiary. You can transfer all or some of the funds with the 529 account to the new beneficiary. If your new beneficiary already has an Ohio Direct 529 Plan, just add the account number on the form and you’re done.
If you need to open an account for your new beneficiary, you can do that on this form as well. Complete steps 4 through 6, which include selecting the investment options for the new account. You do have the option of keeping the same investment allocation for your new beneficiary or you can choose age-based or target enrollment portfolios, risk-based portfolios, or individual investment options that might be a better fit for your new beneficiary. If you are invested in an Advantaged Age-Based Portfolio (AABP) or a Vanguard Ohio Target Enrollment Portfolio (TEP) for the original beneficiary and opt not to change those investment options for the new beneficiary, it may still change if the new beneficiary is a different age.
Before you can move to the next step, check that your percentage totals in the chosen investment portfolios add up to 100 percent.
The next two steps — naming a successor owner and setting up an automatic investment plan (AIP) — are optional and can only be selected if you, as the original account owner, remaining the same. Read terms of agreement before getting ready to sign the form. Your signature must be notarized and dated on the same date as the notarization. A signature guarantee will not be accepted in place of a notary’s seal.
A couple of things to keep in mind: 1) you cannot complete a beneficiary change on a UTMA/UGMA account and 2) both the current beneficiary and new beneficiary must be under the same account owner.
Other reasons to transfer 529 funds
There are some other reasons for which you may want to consider changing the beneficiary of your Ohio 529 account. If your child earns a full-ride scholarship that covers all their higher education expenses, you can transfer their 529 account to another member of the family without any penalty. Or if your child won’t need the 529 funds because they will be attending an U.S. military academy, you can also transfer their Ohio 529 account to their sibling.
It’s also important to know that there are no time constraints when your student can use a 529 plan. So, you can hold onto the account for when your child might change their mind about continuing their education after high school.
Need some help?
Have more questions? Our Customer Service Department is available from 8:30 a.m. – 6 p.m. EST Monday-Friday at 1-800-AFFORD-IT (1-800-233-6734). If you already have an account and would like to make some changes, you can log in to your Direct 529 Plan account to increase automatic deposits or payroll deduction contribution amount, update information, or manage your Ohio 529 account.
Since 1989, Ohio 529 CollegeAdvantage has been helping families across the nation save for their children’s or grandchildren’s education after high school. An Ohio 529 account covers qualified costs at any four-year college or university, two-year community college, trade or vocational school, apprenticeship approved by the U.S. Labor Department, or certificate or credential program nationwide that accepts federal financial aid. Learn, plan, and start for as little as $25 today at CollegeAdvantage.com.
