529 Plans: A Tool for Education CostsDec 22, 2022
Though education costs continue to climb, starting to save early can make a difference.
With education costs rising, paying for college has become a major life expense that requires smart planning. Find answers to key questions here.
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, room and board, books 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