Beginning in 2015,
owners of 529 accounts will be able to change the investment options on their
existing plan contributions twice per year instead of just once.
The new provision
is included in the recent Achieving a Better Life Experience (ABLE) Act of
2014, which passed with the tax extenders legislation and became law in
December.
This increased
flexibility is a welcome option for parents and grandparents who use 529 plans
to save for their children's or grandchildren's college education.
Previously, if an
account owner had exhausted his or her once-per-year investment change
allowance, the only way to change investment options again on existing
contributions in the same year was to change the beneficiary of the account,
which may not have been desirable or feasible.
