Easy Steps to Open a 529 College Fund with Fidelity

Table of Contents

1. Introduction
2. Step 1: Accessing the Investment Products Menu
3. Step 2: Selecting the 529 College Savings Option
4. Step 3: Opening a 529 Account
5. Step 4: Choosing the Type of 529 Account
6. Step 5: Providing Beneficiary and Successor Participant Information
7. Step 6: Selecting the Default 529 Plan
8. Step 7: Choosing an Investment Strategy
9. Step 8: Reviewing and Confirming Account Information
10. Step 9: Agreeing to the Terms and Conditions
11. Step 10: Funding the Account
12. Conclusion

Step-by-Step Guide on How to Open a 529 Plan with Fidelity

Introduction

Opening a 529 plan with Fidelity is a straightforward process that can help you save for your child's future education expenses. In this guide, we will take you through the step-by-step process of opening a 529 plan with Fidelity. By following these simple instructions, you can start investing in your child's education and securing their financial future.

Step 1: Accessing the Investment Products Menu

To begin opening a 529 plan with Fidelity, you first need to access the Investment Products menu. Log in to your Fidelity account as an adult and hover over the "Investment Products" option on the main account page. A dropdown menu will appear.

Step 2: Selecting the 529 College Savings Option

From the dropdown menu, scroll down until you find the option that says "529 College Savings." Click on it to proceed to the next page, where you can learn more about 529 plans.

Step 3: Opening a 529 Account

On the next page, you will see an option to "Open a 529 Account." Click on it to move forward in the account opening process.

Step 4: Choosing the Type of 529 Account

Fidelity offers two types of 529 accounts: Individual and Custodial. The Individual account is the most common option. Select the Individual 529 account option to continue.

Step 5: Providing Beneficiary and Successor Participant Information

On the beneficiary and successor participant page, enter the necessary information. Fill out the beneficiary's name, date of birth, and social security number. Confirm if the beneficiary is a U.S. citizen and indicate your relationship with the beneficiary. If needed, update the address information as well.

Step 6: Selecting the Default 529 Plan

Based on your state of residence, Fidelity will recommend a default 529 plan. In this case, it is the Fidelity Arizona College Savings Plan. If you agree with the recommendation, click "Next" to proceed. You can also choose a different plan if you feel it suits your needs better.

Step 7: Choosing an Investment Strategy

Next, you'll need to select an investment strategy for your contributions. Fidelity offers two options: Age-based Strategy and Custom Strategy. The Age-based Strategy automatically adjusts the investments as your child gets closer to college. The Custom Strategy allows for more control over your investments.

Step 8: Reviewing and Confirming Account Information

Review all the information you have provided, including personal details, employer information, and beneficiary information. Double-check if everything is accurate. Confirm your account settings, the chosen investment strategy, and the 529 plan you have selected.

Step 9: Agreeing to the Terms and Conditions

Carefully read through all the agreements and terms presented on the next page. Decide whether you agree to receive electronic deliveries of documents. Take note of any additional information or instructions provided. Once you are comfortable with the terms and conditions, click on "Open Account" to proceed.

Step 10: Funding the Account

After successfully opening the account, you will be prompted to fund it. Fidelity offers various options for funding, including one-time transfers and recurring transfers from your bank. Choose the option that suits your preferences and follow the instructions provided. You can also set up gifting options for others to contribute to the 529 plan.

Conclusion

Opening a 529 plan with Fidelity is a simple process that can provide significant benefits for your child's future education. By following the step-by-step guide detailed above, you can successfully open a 529 plan account and start saving for your child's educational expenses. Take advantage of the investment options and funding choices available to secure your child's financial well-being.

FAQs

(Q) Can I open a 529 account if I already have an adult account with Fidelity?

• Yes, having an adult account with Fidelity doesn't prevent you from opening a 529 account. You can proceed with opening a 529 account following the provided guide.

(Q) What happens if I need to change the beneficiary of the 529 plan?

• If you need to change the beneficiary of the 529 plan, you can do so by updating the information in your account settings. This can be done at any time to ensure the funds are allocated to the intended recipient.

(Q) Can I contribute to the 529 plan from multiple sources?

• Yes, you can accept contributions from multiple sources for the 529 plan. This can include personal contributions as well as contributions from other family members or friends.

Resources:

• Fidelity: 529 Plans
• Fidelity Arizona College Savings Plan: Plan Details
• Fidelity 500 Index Fund: Fund Details

Highlights:

• Opening a 529 plan with Fidelity can help you save for your child's education.
• Access the Investment Products menu in your Fidelity account to start the process.
• Choose between an Individual or Custodial 529 account.
• Provide beneficiary and successor participant information.
• Select the default 529 plan or choose a different one based on your preferences.
• Choose an investment strategy and review the account information before proceeding.
• Agree to the terms and conditions before opening the account.
• Fund the account using the available options, including one-time transfers and recurring transfers.
• Monitor and manage your 529 plan through your Fidelity account.

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