college

Bear market shouldn't scare 529 savers

Later on, you can switch to another investment option if you decide you want to take on more risk. Switching to a different investment option in your 529 plan is permitted one time per calendar year. A few 529 plans allow for dollar-cost averaging from their money market option into equity-weighted options. These transfers do not count against your once-per-calendar-year investment change.

With your account currently in a loss position, you could decide to liquidate it and claim a miscellaneous itemized deduction on your tax return. But first, check with your tax professional. Miscellaneous itemized deductions provide no benefit unless they exceed 2 percent of your adjusted gross income.

If you can get a tax benefit, be sure to wait 61 days before re-contributing the proceeds to another 529 plan so that you avoid rollover characterization.

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