529 Plan

Education and College Planning, Personal Finance
Published Date: October 24, 2024
Last Modified: 2 months ago

What is a 529 Plan and How Does It Work?

A 529 plan is a tax-advantaged savings plan specifically for future education costs. It offers federal tax benefits and often state tax benefits, allowing your savings to grow faster for qualified education expenses. These plans can be used for college, vocational schools, or even K-12 tuition in some cases.

Glossary Article

Education and College Planning, Personal Finance

Want to speak to an expert?

Fill out this form and we will contact you with for a free consultation

Recommended for You

Perkins Loan

The Federal Perkins Loan was a need-based student loan program where the school acted as the lender. Although the program has ended, current borrowers have access to unique benefits, including specific loan cancellation programs.

College Savings Strategies

College savings strategies enable families to efficiently prepare for rising tuition costs, reduce future debt, and support higher education funding with smart planning.

Education Workforce Tax Credit

The Education Workforce Tax Credit offers incentives to boost educational staffing, providing tax relief for qualifying employers. Understand its components and compliance.

529 Plan Beneficiary Management: When and How to Change Names

Changing the beneficiary on a 529 plan is a common, often tax-free step when family circumstances change. Knowing the IRS rules, state-plan steps, and financial-aid impacts prevents costly surprises.

Tuition Payment Plan

A tuition payment plan breaks down your total tuition bill into a series of smaller monthly payments. Offered directly by schools, these plans are typically interest-free and serve as a smart budgeting tool to avoid student loan debt.

Education Funding Strategies: Balancing Savings and Scholarships

Education funding strategies combine tax-advantaged savings and non-repayable aid to lower the cost of college and other qualified schooling. Balancing savings (like 529 plans) with aggressive scholarship searches can reduce or eliminate student debt.

One Application. 20+ Loan Offers.
No Credit Hit

Compare real rates from top lenders - in under 2 minutes