In the original Federal legislation establishing the 529 program, there was a prohibition against the account owner being able to "direct" the investment. This prohibition has been modified.  Now there are two provisions for an account owner to change investments without tax or penalty being imposed at the Federal level: 1) Once a calendar year, funds may be moved for any reason; 2) Changing the named beneficiary triggers the second opportunity to change allocations within an existing account.  The once-a-year provision includes moving from one 529 plan sponsor to another (called a rollover) or changing the investment election within an existing plan.  Some 529 plans may charge an administrative fee for terminating an account and rolling the assets to another plan.  Most plans do not charge for a change in investment direction within their plan.  The limitations for investment changes within the same plan or rollovers are keyed to the named beneficiary.  The investment direction change and rollover may be made only once every year per beneficiary.  Therefore, if a change or rollover is planned no other changes can be made for that beneficiary within the year.