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What is a 529 plan?

A 529 plan is a tax-advantaged savings account designed to be used for the beneficiary's education expenses. Use the money in your 529 for a wide range of college expenses at accredited schools nationwide in addition to tuition expenses for K-12, certain apprenticeship costs, and student loan repayments. 1

Should my child invest in a 529 plan?

In general terms, an 529 investment strategy by age involves more aggressive fund allocation when your child is younger, and shifts to a more conservative approach as they get closer to college age. Parents should review their 529 plan investment options periodically to make sure they are still on track to meet their goals.

Should I create a 529 plan?

Creating a 529 plan gives you a tax-advantaged strategy to save for educational expenses from kindergarten to graduate school, including apprenticeship programs. If the 529 account is 15 or more years old, you can move up to $35,000 of unspent funds into a Roth IRA account.

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