Just to supplement this answer, you'll be given a few options when you change the beneficiary. There's a pretty straightforward form to complete, so just be prepared to answer the provide the following to Fidelity:
- The SSN of you, the current beneficiary, and the new beneficiary
- The relationship between beneficiaries (not a problem in your case)
- Whether you want to do a full or partial transfer, meaning if you want the entire account to be in the name of the new beneficiary or not. If you already have an account for the new beneficiary, you'll have the option of putting the assets into that account.
- You will have the option of electing a new investment, so you can change from, say, a currently conservative portfolio to one that is more aggressive for the little one. Or, you could allocate among several portfolios; it's up to you.
VP, Research & Development
This information does not constitute tax advice and is provided for informational purposes only. Please consult your tax advisor, financial advisor, local taxing authority, and/or plan provider or sponsor for more information.