529 College Savings Plan Made Easy To Understand

Planning for college? In this episode of How We're Doing It, first-gen parents Tijani and Yazmin break down 529 plans, explaining tax benefits, savings options, and strategies for maximizing education funds. Get clear, practical advice to secure your child’s future! Previous Question: Can U.S territories set up a 529 Plan? Answer: Yes. All 50 States and U.S territories are eligible. Chapter (00:00) Yasmin: Conversations about 529 plans are important now (01:24) Today's conversation is about 529 plans. Like the college saving plans (07:35) Every state has a different 529 plan (08:47) There are two main types of 529 plans: education savings and prepaid tuition plans (12:52) Section 529 plans are sponsored and run by all 50 states including the District of Columbia (14:47) With the 529 plan, you can put money towards your child's retirement (17:06) 529 plan grows tax deferred until student is in college or vocational school (19:00) There is a limit that people can gift you towards the 529 (20:34) So let me talk about some benefits and potential disadvantages of 529s (24:01) So let me talk about some of the disadvantages of a 529 real quick (25:45) The 529 plans have specific transferable transfer rules (30:28) 529 is pretty extensive and it covers a lot of, uh, those things (32:03) How much are you putting towards your 529 account and how often (33:41) Does having a 529 impact your financial eligibility when going to college (37:39) With 529, you can do what they call target funds or target date investment (40:16) Creating a five to nine gives you a tax advantage, which we already talked about Connect with us! ⁠⁠⁠⁠⁠⁠Website⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠Instagram⁠⁠⁠⁠⁠⁠ ⁠⁠⁠⁠⁠⁠TiKToK ⁠