For whom can I open an account?
An account may be opened for anyone you choose to help prepare for college expenses, including any child, grandchild, niece/nephew, non-relative or even yourself. And, there are no age limits on beneficiaries.
Am I eligible to contribute?
Anyone may contribute; no income limits apply.
When's the deadline for contributions?
Contributions for the previous tax year may be made up to the tax return filing deadline, usually April 15.
Up to what age may I make contributions?
You may be any age to make contributions.
When can I begin withdrawing my contributions?
529 Plan distributions can be taken for any qualifying post-secondary education expense, including tuition, fees, books, supplies, equipment, room and board (with certain restrictions) and special-needs services.
How are my withdrawals taxed?1
As long as the distributions are used for qualifying education expenses, and as long as the distributions are not in excess of amounts spent on education expenses, as of 2002, the withdrawals are free from federal taxation. State tax varies. Withdrawals for non-qualified use are taxed as ordinary income and may be subject to a 10% penalty.
What are my conversion options?
Assets in a 529 Plan may be transferred to another 529 Plan for the same designated beneficiary or to a member of the designated beneficiary's family no more than once annually.
1 Chevy Chase Bank does not provide tax advice to any of its clients. You may want to seek professional tax advice prior to investing.