529, Ante Up

December 28, 2011 1:07 PM

Is there any particular 529 plan with a web interface so that anyone can easily make contributions to my (forthcoming) kid's account?

Ideally, I'd like to give family and friends an option: "Instead of material presents this shower/birthday/Hanukkah/Christmas, please consider helping my child's future education (all while providing a lesson in compound interest); here's a link to give directly to this 529. And I'm sure you'll get a receipt for tax purposes or something."

posted by glibhamdreck to Education (6 answers total)

I doubt it, based on how they are set up. 3 years ago I didn't find any of them that worked that way (although the UPromise might.)

In my household 529 contributions from grandparents were SUPPOSED to work like this:

- I added all grandparents to the account as authorized depositers (and they also get statements in the mail) and I gave all grandparents the mailing address and account number.

IN REALITY:

- I get checks with 'for 529' in the memo line from Grandparents and I do it myself. (1 grandparent participates, btw).

And, fwiw, I found that most relatives were totally disinterested in this in lieu of holiday/birthday gifts. People really enjoy buying baby things and seem to enjoy buying older toddler presents even more and do not want to be told not to do it. If you want people to help contribute to your child's college education, you may want to have a larger discussion with them about it.

PS, as with all 529 discussions, please ensure that you and your spouse are totally comfortable with where your retirement accounts are at and that you have no debt. Your kid can always borrow for college, but you guys can't borrow for your retirement.
posted by k8t at 1:36 PM on December 28, 2011

Upromise didn't offer this directly online (as of a few months back when I stopped paying close attention to Upromise), although you can have all your friends, family, neighbors, and internet strangers register their various grocery store loyalty cards to have them linked to your 529.
posted by rmd1023 at 1:41 PM on December 28, 2011

The Illinois 529 plan has exactly what you're looking for. You click a link to invite friends or family to contribute and then fill out their email information. It even has email templates you can use. The recipient will have the option of making an electronic transfer via checking account or printing out a form to send in with a check.
posted by photovox at 2:09 PM on December 28, 2011

Seconding the Illinois 529 plan. SuperTeenSquirrel's account is worth more than my retirement account, thanks to very generous grandparents who deposit online for birthdays and holidays and occasionally for no reason at all. (I love my in-laws!)
posted by SuperSquirrel at 3:29 PM on December 28, 2011

This is exactly what the Independent 529 does -- if it appeals to you. (This is a national prepaid tuition plan for mostly small, independent colleges.) It's managed by Oppenheimer, I believe, and you can enter a relative's address online and they'll send them an email worded exactly like your question, along with a donation link.
posted by turducken at 5:54 PM on December 28, 2011

I use the Michigan Plan and they send me paper forms that can be mailed in for my child's account. All of my transfers are electronic, so I give the paper and envelopes to the grandparents to use.
posted by szg8 at 7:37 PM on December 28, 2011