4. Review annual statements: Owners of 529 plans should review annual statements to make sure their investments are earning what they expected, and make changes as necessary. One change to consider as the year begins is adjusting or starting monthly contribution plans, Fitzgerald says. With tax filing season fast approaching, he says, "Make sure any year-end contributions are attributed to the correct tax year if you have any in-state tax deductions or credits."
Parents should always ask about plan prices and what the plan will cost the following year based on current investments or investments being considered, he notes. In most 529 plans, changes can only be made once per year, so making changes within existing plans or choosing new plans should be considered carefully. New investors should request reports on plan performance over the last year, Fitzgerald suggests.
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