What is the best 529 plan for You?

The best 529 plan for you is going to depend on your investment goals and the state where you live, because these plans can vary widely by state (as can the associated tax benefits for 529 contributions). Start by looking at your state’s plans.

What is a 529 savings plan?

The 529 savings plans are more flexible, allowing beneficiaries to use the money at all qualified postsecondary schools, typically without a state residency requirement. He added that 529 savings plans allow owners to select investments for the account and to tailor the risk level to the appropriate time horizon.

Should you invest in a 529 plan?

If you like the idea of saving for education expenses while also getting tax-advantaged investment growth, consider a 529 plan. A 529 plan is a tax-advantaged vehicle to save for college and trade and vocational courses participating in U.S. Department of Education student aid programs. You can even apply 529 funds to qualified K-12 expenses.