A 529 plan is a powerful, tax-advantaged way to save for your child’s or grandchild’s education. With the cost of college rising, early planning can make all the difference.
Here’s how it works:
Tax-free growth and withdrawals: Contributions grow tax-free, and when used for qualified education expenses, the funds can be withdrawn tax-free.
State tax benefits: Many states offer a tax deduction or credit for contributions to a 529 plan.
Flexibility: If your child doesn’t need the funds for education, you can change the beneficiary to another family member or roll unused funds into a Roth IRA for their retirement savings—up to $35,000.
Superfunding: You can make up to five years of contributions at once without triggering gift taxes—up to $90,000 for individuals or $180,000 for couples.
Curious if a 529 plan is the right fit for your family’s education goals? Contact us to discuss how we can help set up the right plan for you.