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What You Need to Know About 529 Plan Beneficiaries

529 beneficiary decisions are not set in stone—but there are limitations when it comes to selecting a replacement.

Did you know that the beneficiary chosen when an investor sets up a 529 plan can be changed at any time, for any reason?
While there are limitations as to who may be selected as a replacement, changing beneficiaries is totally up to the account owner—and there's no need to provide a reason for doing so.


Why Change Beneficiaries?

Beneficiary changes often come into play as children near high school graduation. Perhaps a child decided not to go to college, despite the urging of his or her parents. Or there may be excess money remaining in the 529 account after all the beneficiary's college bills have been paid.

Who Can Be the Plan's New Beneficiary?

No matter what the reason for the beneficiary change, account owners are faced with a decision. One idea is to name a second child in the family. But switching to another child isn't the only possible route. For example, a spouse or even the account owner may be planning to go back to school, and either may be named the new beneficiary.

The only stipulation is that the replacement beneficiary must be a member of the same family as the original beneficiary.1

Please contact us if you have questions or would like more information about changing beneficiaries.
 

1 Please see the Offering Statement or Disclosure Booklet for the rules and restrictions regarding choosing replacement beneficiaries. The following family members of the existing Designated Beneficiary are considered "Eligible Family Members" and can be named as the replacement Designated Beneficiary: son, daughter, or descendant of either; stepson or stepdaughter; brother, sister, stepbrother or stepsister; stepfather or stepmother; father, mother or ancestor of either; son or daughter of a brother or sister; brother or sister of father or mother; son-in-law, daughter-in-law, father-in-law, mother-in-law, sister-in-law or brother-in-law; spouse or spouse of any family member listed above; or first cousin.

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SMART529 West Virginia board logo

SMART529 is offered by the West Virginia Prepaid Tuition and College Savings Program Board of Trustees and is administered by Hartford Funds Management Company, LLC (“HFMC”).

Investments in SMART529 are not guaranteed or insured by the State of West Virginia, the Board of Trustees of the West Virginia College Prepaid Tuition and Savings Program, the West Virginia State Treasurer's Office, HFMC, The Hartford Financial Services Group, Inc., the investment sub-advisors for the Underlying Funds or any depository institution and are subject to investment risks, including the loss of the principal amount invested, and may not be appropriate for all investors.

The Hartford SMART529 is available to all investors. West Virginia (WV) provides certain tax advantages to WV taxpayers that invest in The Hartford SMART 529. Before investing, an investor should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice.

Investors should carefully consider the investment objectives, risks and charges and expenses of SMART529 and its Underlying Funds before investing. This and other information can be found in the Offering Statement for SMART529 and the prospectuses or other disclosure documents for the Underlying Funds. Please read them carefully before investing or sending money. SMART529 college savings plans are distributed by Hartford Funds Distributors, LLC. Member SIPC

"The Hartford" is a registered trademark of Hartford Fire Insurance Company.

"SMART529" is a registered trademark of West Virginia Prepaid Tuition and College Savings Program Board of Trustees.

"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries.

CHET Connecticut state seal logo

CHET Advisor is administered by the Treasurer of the State of Connecticut as the trustee of the Connecticut Higher Education Trust Program and Hartford Funds Management Company, LLC (“HFMC”) serves as Plan Manager.

Investments in CHET Advisor are not guaranteed or insured by the State of Connecticut, the Connecticut Higher Education Trust Program, the Connecticut State Treasurer's Office, HFMC, The Hartford Financial Services Group, Inc., the investment sub-advisors for the Underlying Funds or any depository institution and are subject to investment risks, including the loss of the principal amount invested, and may not be appropriate for all investors.

CHET Advisor is only available to account owners who are Connecticut (CT) residents. CT provides certain tax advantages to CT taxpayers that invest in CHET Advisor. Before investing, an investor should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.

Investors should carefully consider the investment objectives, risks, charges and expenses of CHET Advisor and its Underlying Funds before investing. This and other information can be found in the Disclosure Booklet for CHET Advisor and the prospectuses or other disclosure documents for the Underlying Funds, which can be obtained in the College Savings pages of www.hartfordfunds.com or by calling 877-407-2828. Please read them carefully before investing or sending money. CHET Advisor is distributed by Hartford Funds Distributors, LLC. Member SIPC

This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice.

"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries.

No state funds have been used to produce these materials nor have materials been produced at taxpayer expense.

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