Funds contributed are immediately excluded from the owner's taxable estate, however, unlike UGMAs or UTMAs*, the donor still maintains "ownership" of the account.

The Owner may change the beneficiary of the account to another family member of the original beneficiary at any time.

The account owner may withdraw funds from the account for his or her own use at any time (a 10% penalty on earnings may apply for all non-qualified withdrawals.)

In a 529 Plan account, only the Account Owner may direct withdrawals from the account.

*Under the UGMA (Uniform Gifts to Minors Act) or UTMA (Uniform Transfers to Minors Act), once the beneficiary reaches age of maturity, they gain full access to the funds in their account. They may then spend those funds however they see fit.

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