529 PLANS: A POWERFUL TOOL FOR EDUCATION COSTSMay 2, 2023
How does a 529 plan work? What are the benefits of 529 plans? Learn the basics of these tax-advantaged vehicles and why it helps to start saving in them early.
Once you fund a 529 account, any growth of that money is generally income tax-free. And it can normally be distributed income tax-free if it’s used to pay for qualified education expenses, including tuition and supplies.1
Because contributions to a 529 plan are generally excluded from a donor’s gross estate calculation,2 you can typically move money from your taxable estate to beneficiaries estate tax-free, without ever losing control.
Help pay for private K-12 education, graduate school, semesters abroad, apprenticeship programs and student loans.1 Stay in full ownership of your account even as you change beneficiaries or withdraw funds.3