Observed each year on May 29, National 529 Day is a fun way to raise awareness about the importance of saving for future education expenses and to highlight the benefits of saving with a 529 plan for those education needs – whether that means college, trade or technical school, or a registered apprenticeship program. (Funds can even be used for K-12 education!)
When you save with a 529 plan, you enjoy significant tax advantages. Your earnings not only grow tax-free, but they also won’t be taxed upon withdrawal when used for qualified education expenses, such as tuition fees, room and board, books, and even computers.
A 529 plan enables families and friends to contribute collectively to a child’s future education. And you can combine the funds with financial aid to make college and other higher education more affordable. All in all, 529 plans are excellent tools to open new doors and unlock exciting futures for any child in your family.
Every state has a different plan, and most do not require you to reside in that state, although there are usually tax benefits for the donors who are residents. There are other factors to decide, such as who will own the account, the parent or the grandparent? Click on our previous article on 529 plans for key points to consider.
At Asset Advisors, we’re just a call away to discuss how you can fit a 529 savings plan in with your financial goals. Our clients count on us to help explore various saving and investment strategies.
Celebrate 529 Day by asking if it’s right for you and your family!
Good information is also available at Investopedia.com
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