Can You Open a 529 Plan Without a Child?

A 529 plan is a tax-advantaged savings vehicle designed to help individuals save for future education costs. Contributions to a 529 plan grow free from federal income tax, and withdrawals are also free from federal income tax when used for eligible expenses. This structure encourages proactive saving for various educational pursuits.

Eligibility to Open a 529

An individual does not need to have a child to open a 529 plan. Any adult U.S. citizen or resident, at least 18 years old, who possesses a U.S. mailing and legal address along with a Social Security number or Tax ID, can open an account. There are no income restrictions for either the person contributing to the plan or the beneficiary. A single individual can establish multiple plans.

The account owner also has flexibility in designating a beneficiary for the plan. The beneficiary is the individual for whom the education savings are intended. Importantly, the account owner and the beneficiary do not need to be related, and the account owner can even name themselves as the beneficiary.

Using a 529 for Different Beneficiaries

A 529 plan offers flexibility in how it can be utilized when the account owner does not designate their own child as the beneficiary. An adult can open a 529 plan and name themselves as the beneficiary, using the funds for their own continuing education, career changes, or graduate school.

The plan can also benefit a wide range of other individuals, including a spouse, grandchildren, nieces, nephews, or other relatives. Even non-relatives can be named as beneficiaries, offering a way to support a friend’s education.

Should circumstances change, the account owner can change the beneficiary to another eligible individual. This change can be made without incurring federal tax consequences if the new beneficiary is a member of the current beneficiary’s family. The Internal Revenue Service (IRS) provides a broad definition of “family member,” which includes spouses, children (including step, foster, and adopted), siblings, parents, in-laws, aunts, uncles, nieces, nephews, and even first cousins.

Important Account Owner Considerations

Understanding what constitutes “qualified education expenses” is important for any 529 plan owner to ensure tax-free withdrawals. These expenses include tuition and fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Room and board expenses also qualify, provided the beneficiary is enrolled at least half-time, with off-campus housing costs limited to the institution’s cost of attendance allowance.

Additionally, 529 funds can be used for up to $10,000 per year per beneficiary for tuition expenses at elementary or secondary public, private, or religious schools, a limit set to increase to $20,000 in 2026. As of July 4, 2025, qualified K-12 expenses also expanded to include curricular materials, books, tutoring, exam fees, and online educational materials. Funds can also cover fees, books, supplies, and equipment for registered apprenticeship programs and recognized postsecondary credential programs. Furthermore, up to $10,000 in student loan repayments per beneficiary over a lifetime is also a qualified expense.

Withdrawing funds for purposes other than qualified education expenses can have tax implications. The earnings portion of such non-qualified withdrawals is subject to federal income tax at the recipient’s ordinary income tax rate. An additional 10% federal penalty tax applies to these earnings.

The 10% penalty may be waived in certain situations, such as if the beneficiary dies, becomes disabled, or receives a tax-free scholarship that reduces their need for 529 funds. While the penalty may be waived in these instances, the earnings portion of the withdrawal remains subject to ordinary income tax. Account owners should maintain records of all contributions and withdrawals to accurately report to the IRS and ensure compliance with tax regulations.