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How much does a 529 plan cost?
States often charge an annual maintenance fee for a 529 plan, which ranges from free to $25. In addition, if you bought your 529 plan through a broker or advisor, they may charge you an additional fee for the assets under management. The individual investments and funds inside your 529 may also charge ongoing fees.Are 529 accounts a good investment?
Given the rising costs of tuition, this generally means locking in lower prices for college later on. Despite their advantages, the Education Data Initiative estimated in 2023 that only about 30% of American college savings are held in 529 accounts. Nevertheless, those who do use them contribute an average of over $7,500 annually.Can a 529 account be used for Education?
Brokerage account funds can be used for any purpose, including education, without restrictions or penalties. Section 529 plans have specific transferability rules governed by the federal tax code. The owner may transfer funds to another 529 plan once per year unless a beneficiary change is involved.