529 Plans

A 529 college savings plan is a tax-advantaged investment account. Your contributions are invested, and you can withdraw them at a later date to pay for education expenses. These accounts can be a great way to use the funds for qualified education expenses that include administrative fees, approved study equipment, room and board fees, and textbooks.

Funds in this type of plan can be used for any eligible educational institution, regardless of whether the institution is in the state sponsoring the 529 plan. There are generally three types of investments offered within 529 plans: individual funds, pre-allocated portfolios and age-based portfolios.

Action: Consider a 529 college savings plans if you’re unsure of which college or university your beneficiary will choose and you want to use the funds for more than just tuition. Your beneficiaries can be children or grandchildren.