A 529 Qualified Tuition Plan helps families save for future education expenses in a tax-advantaged way. Whether for a child, grandchild, or even yourself, a 529 plan offers flexibility and potential growth.
Two Types of 529 Plans:
- Prepaid Tuition Plans – Lock in today’s tuition rates at participating colleges.
- College tax-free Savings Plans – Invest in a portfolio of stocks, bonds, or mutual funds to grow savings.
Key Benefits:
✔️ Tax-Free Growth – Contributions grow tax-free when used for qualified education expenses.
✔️ State Tax Benefits – Some states offer deductions for 529 contributions.
✔️ Flexible Use – Funds can cover tuition, books, room & board, and other education costs.
A financial planner can help optimize your 529 contributions to balance education savings with other financial goals.
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
