A 529 plan is an investment account that is used to pay for some sort of education. Generally, it is a prepaid tuition plan that has helped millions of young, bright scholars since the mid 1980’s. However, starting and maintaining an account can be difficult, so experts recommend taking 529 tax deductions during college years, contributing up to five years at once, choosing the plan with the best features that will maximize your time and efforts, and use it for student load debt, if applicable.
- In some states, you can take advantage of a 529 plan even if your parents didn’t open an account before you started college.
- If one child doesn’t need the 529 money, you can switch the beneficiary to another child.
- In certain states, a 529 plan can be used for K-12 private education or for student loan debt.
“If you’ve opened a 529 plan, you’re already ahead of the curve when it comes to preparing for your child’s education. But by taking advantage of a few key 529 plan tips, you may be to get even more value out of your plan. These are our best 529 plan tips and tricks to maximize your benefits.”