Are 529 plans a good choice for college savings?

529 plans allow you to earmark savings for a wide range of academic needs, while also taking advantage of state and federal tax benefits for plan holders and contributors. College savings plans are fairly easy to set up. You should always review 529 plan state tax benefit rules to make sure you choose a plan that qualifies.

What are the benefits of a 529 plan?

This will allow you to find the one that offers the options best suited to your needs. 529 plans offer several benefits, including: Federal tax breaks. You won’t pay taxes on 529 plan earnings, provided you use the money for qualified higher education expenses, vocational school, K-12 tuition or apprenticeship fees or expenses.

Are 529 plans tax-advantaged?

When it comes to saving for college and other education expenses, the 529 plan comes close to being the perfect tax-advantaged savings vehicle. 529 plans have pros and cons, but they offer significant advantages, especially concerning your tax return.