08/07/2026
As the new school year begins, many families are thinking not only about today's education expenses, but also about planning for future educational goals.
Financial Term Friday: 529 Plan
A 529 Plan is a tax-advantaged savings plan designed to help families save for qualified education expenses. Depending on the plan and current tax laws, earnings may grow tax-deferred, and qualified withdrawals may be tax-free. Tax benefits and eligible expenses are subject to federal and state rules.
Here are a few things to know about 529 plans:
✔️ Funds can be used for a variety of qualified education expenses, subject to applicable rules.
✔️ Anyone can contribute, including parents, grandparents, other family members, and friends.
✔️ Contribution limits and state-specific features vary by plan.
✔️ Beginning to save early may provide more time for your savings to grow, although growth is not guaranteed and investments are subject to market risk.
Every family's education savings goals are different. Understanding the available options can help you make informed decisions about preparing for future education expenses.
Have you started planning for future education costs?
We'd love to hear what questions you have about education savings in the comments!
This information is provided for educational purposes only and is not intended as tax, legal, or investment advice. Investing involves risk, including the possible loss of principal. Tax benefits and qualified expenses are subject to federal and state law. Consult your tax, legal, and financial professionals regarding your individual situation.