So I don't have any kids and unless I adopt one soon it isn't in the cards for me.

I just found out my sister and brother in law haven't saved anything for my 9 year old nephew's college. Now my grandmother has a 529 in his name but I don't think there is much in the account, going to talk to her about it in the next few weeks.

I would like to save and contribute to his college. Is the best way a 529 or another type of account? My only fear is I don't have any other kids to transfer the 529 to if he doesn't use it for some reason.

Oh wise B&I board please help.

Bump - also looking for similar advice.

My brother just had a kid and for Christmas I want to set up a college savings fund (happy first Christmas present!)

Is the best route a 529 or should I just set up an vanguard account and buy mutual funds?

We have a 529 set up for both my niece and nephew. Just have to have the understanding that if it's not used, it will be subject to the taxes and penalties. In our case, we just know that is the situation and have accepted it.

Thanks now I just need to drag up the which state has the best 529 threads.

Seems I've read Utah and NY are the best.

This is the best website for comparing 529 plans.

Saving For College -- 5-Cap Ratings

For an unused 529 that is cashed out, you are subject to 10% penalties and taxes on the growth (not principle) is that correct?

Correct.

Does the kid have to exist or can it be set up in speculation and transferred to a niece/nephew if you can't have a kid for some reason?

topher06 said:

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Does the kid have to exist or can it be set up in speculation and transferred to a niece/nephew if you can't have a kid for some reason?

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SS# is needed

I think you can set it up for yourself and then use it on your kid. Not sure how it works transferring to someone else's kid though. Don't think that is possible.

You can transfer a 529 to another person if the initial person didn't use it.

so if I set one up and contribute for the next 18 years, i can simply transfer it to my Brother and use it for his kid?

Yes. You transfer is to your Brother's kid. Not your brother.

http://www.savingforcollege.com/articles/ask-an-expert-how-can-i-move-my-funds-from-one-529-plan-to-another-without-incurring-taxes-756