overfunding offers some interesting wrinkles in terms of transfering wealth downstream to successor owners or future beneficiaries, and the wrinkles may be even more interesting when the nonstep up in basis for estate taxes kicks in.
But yes, in general I agree it makes no sense to way overfund a 529 compared to likely college costs w/o some penality free out mechanism, like shift the balance to great grandpa on his deathbed. But then again if you counted on a "state college" and your daughter picks an Ivy all the way thru medical school what you thought was overfuding may not be near enough. So in today's world for 98% of us, overfunding is not a real problem?
I will be glad to take the successor ownership of anybody who overfunds and cannot figure out how to get it out w/o a penality.
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Drew
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