10 Ways a 529 plan makes education more affordable

1023. Are you worried about the future cost of education for yourself or a child? Laura reviews ten ways a 529 savings plan supercharges education savings and can even be used for young students, non-traditional coursework, and professional career pivots. Key takeaways Contributions to a 529 plan get taxed upfront, but the account growth and withdrawals for qualified expenses are tax-free. States sponsor 529 plans with various benefits and fees; however, you don’t have to be a state resident to participate in the plan. There are no income restrictions to contribute to a 529, and owners typically name a child, who is the future student, as the account beneficiary. Qualified 529 expenses include many costs associated with traditional college, but also include trade schools, vocational training, and professional certifications. You can spend up to $20,000 per year on younger students from kindergarten through high school at public, private, or religious schools. Leftover 529 funds can be rolled over into a beneficiary’s Roth IRA, with certain restrictions. Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: [email protected] or leave a voicemail: (302) 364-0308. Discover more from Money Girl! Facebook Newsletter Transcripts available at QuickandDirtyTips.com. Email: [email protected] or leave a voicemail: (302) 364-0308. Hosted on Acast. See acast.com/privacy for more information.