What is a 529 plan?

529 plans are state-sponsored accounts that offer tax-advantaged savings for education expenses; they cover college, trade and vocational courses, and qualified K-12 expenses. Recent expansions allow 529 funds for apprenticeship programs and student loan repayments without tax consequences or penalties.

Can a 529 savings plan be used for college expenses?

Withdrawals from a 529 savings plan can be used for college and K–12 qualified expenses. Qualified expenses include tuition, fees, room and board, and related costs.

Should you consider a 529 plan?

If you’re looking to save money for your child’s education, consider a 529 plan. A 529 plan allows you to make tax-free withdrawals to pay for qualified education expenses, such as college tuition and fees. What Is a 529 Plan?