How to Make an Investment Option Change

UESP’s recent glide path changes in its age-based investment options provide smoother equity step downs between age brackets and further diversified bond holdings.

The changes also present an opportunity to evaluate your investment’s allocations and determine whether you want to take a different approach.

Account owners are allowed to change investment options twice per calendar year for the same beneficiary, according to IRS rules. Because they were initiated by UESP, the glide path changes did not count as one of the two allowable changes.

If you wish to make an investment option change, you can do so at or by submitting an Investment Option Change form (form 405), which can be downloaded online.

To learn about different investment options when considering an option change, visit our website or read Part 7 | Investment Information of the UESP Program Description.

Remember, the IRS views the transfer of money between two UESP accounts as an investment option change if both the account owner/agent and beneficiary are the same.

If you would like the current balance in an account to remain invested in one investment option, but future contributions to be invested in a different investment option, you will need to open another account for the future contributions. New investments in a different investment option are not considered as one of two investment option changes permitted in any calendar year.