529 Plans

A 529 Plan is a tax-advantaged savings account designed to help families save for education expenses, primarily for college. Contributions grow tax-free, and withdrawals used for qualified education costs—like tuition, room, and board—are also tax-free. There are two types: prepaid tuition plans, which allow you to pre-pay for college at today’s rates, and education savings plans, where you invest in mutual funds for future education expenses. Many states offer tax deductions for contributions, making 529 Plans a strategic way to save for educational goals while enjoying potential tax benefits.