re: 529 higher ed savings question.

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3. Only family members can withdraw 529 plan funds without penalty. While anyone can open a 529 plan account, only family members of the original beneficiary can use the funds for educational expenses without incurring a tax penalty, says Mackey McNeill, a Kentucky-based certified public accountant. However, families who want to change the beneficiary can choose among multiple generations, she notes. For instance, if a couple's oldest offspring receives a scholarship, they could reassign funds to nearly anyone else related to the child, such as siblings, parents, grandparents, first cousins, aunts, and uncles, McNeill says.

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