Schooling has gone through so many changes throughout the past couple of months that it could make anyone’s head spin. Our children, their teachers and even us parents have had to adjust to how things are taught and learned, leaning on technology during this time of separation. One thing that has not changed yet though is the future costs of schooling and how important it is to have a financial plan in place when it comes to funding your children’s education.
In celebration of 529 day, I wanted to share with you some key points about 529 plans and why they matter.
529 plans allow you to
- roll over money from one state’s 529 plan to another’s
- change beneficiaries as long as the new beneficiary is within the same immediate family
- fund the education of a child, grandchild, niece, nephew, family friend or even yourself
- control account withdrawals even after the beneficiary reaches legal age
529 college plans provide several benefits, including
- tax-deferred earnings
- withdrawals that are free from federal tax if used for qualified expenses
- higher contribution limits than other college savings programs
Some recent law changes have made 529 college savings plans even more flexible as they can be used for private school and other expenses along the way. Understanding your options before you invest is important. You should review your plan of action for college savings to ensure you are still on track to meet your goals.
Source: MFS Heritage Planning: 529 College Planning