While there are various ways to go about saving for college, 529 plans remain a very popular choice due to their numerous tax and saving advantages. Setting one up is relatively simple but understanding some of the mechanics of a 529 can get a bit complicated. Below are several facts about 529 plans that can help you navigate across this area:
For any parent wanting their child to go to college, 529 plans are a staple when saving for this goal. The benefits of tax-deferred growth and tax-free withdrawals, if used for qualified educational expenses, make this option very attractive. However, in the realm of possibilities, there exist scenarios in which this account’s funds will not be used.