How to Change Your 529 Plan's Investment Instructions - Fidelity (2024)

FAQs

Can you change investment options in a 529 plan? ›

You can change your current asset allocations twice per calendar year (or upon a change of your beneficiary). For example, perhaps you want to exchange your current assets invested in the static portfolio to an age-based portfolio.

Once you are logged into Fidelity NetBenefits®, click your plan's name on the Home page. To select your investment options, click the “Investments” tab and then “Change Investments”. This will allow you to choose a Tier One: Easy Choice or Tier Two: Guided Choice Option.

Click “Select Funds”. Select “Change investment elections for this source”. Click “Go”. Select your investment options and enter the desired percent of your Deferral Contribution Percentage.

Change your asset allocation online through Fidelity's website by accessing your investment accounts, reviewing current allocations, and reallocating funds based on your updated asset allocation targets and investment preferences.

A 529 plan may allow you to invest in a number of different assets, including stock funds, bond funds, and FDIC-protected money market accounts. Many states also offer target-date funds that adjust the mix of your investments so they're less risky as you approach the time to use the money.

There are two ways to buy a 529 plan: directly and through a financial advisor. If you buy the plan directly then you'll manage all the decisions on the account and decide if you want to change investments or how much money you'll devote to the account.

To make adjustments to your automatic investments, log into your Fidelity account and go to the 'Automatic Investments' section. From there, choose the specific investment you want to modify or cancel.

Although you can have only one core position, you can still invest in other money market funds. If you would like to change your core position after your account has been established, you can do so online or by calling a Fidelity representative at 800-544-6666.

How to change investment in Fidelity rollover IRA? ›

When you are logged into your Fidelity account, locate the section where you can view your IRA holdings. To make changes, you can usually find options like 'Modify Holdings' or 'Manage Investments. ' Click on these features to review your current holdings and make adjustments as needed.

Yes, you can change the investment instructions on any new deposits made to the account at any time. But, per IRS rules, you can only change your current investments twice per calendar year—or if you change beneficiaries—without incurring taxes.

In general terms, your 529 investment strategy should have a higher proportion of assets allocated to high-risk investments like stocks (equity) when your child is younger, and gradually shift to an emphasis on low-risk asset allocation as they age and get closer to college.

Remember, too, that your asset allocation isn't forever. Many financial experts suggest adjusting it as you grow older, opting for a more conservative mix as you get closer to retirement age. As mentioned above, target date funds will automatically decide this appropriate allocation for you and change as you age.

The account owner can roll over assets from one 529 plan into another 529 plan. If a rollover satisfies the following conditions, you will not incur any tax consequences: You are permitted only one rollover to another 529 plan per twelve-month period for the same beneficiary.

The account owner keeps control of the money, can make investment decisions, and can even change the beneficiary if plans change.

As of January 1, 2024, owners of 529 plan accounts can make tax and penalty-free rollovers to Roth IRA retirement plan accounts, subject to certain limitations. This has been welcome news to many families who worried about having unused or leftover funds in a 529 plan account.

You should rebalance your investments at least once a year. An investment change might also make sense for parents who decide to use their 529 plan savings to pay for K-tuition. Most age-based portfolios are designed to help save for college.