![]() ![]() A 529 savings account offers many advantagesĪt the college or graduate level, funds from a 529 plan can be used for tuition, fees, books, supplies, approved study equipment, and room and board for a full-time student at an accredited institution. Understanding the ins and outs of a 529 savings plan may help you unlock one of the biggest bangs for your education-savings buck. Now you are able to spend up to $10,000 per beneficiary per year on elementary or high school tuition expenses from a 529 plan. What's more, tax reform law expanded the value of 529 plans. ![]() Why? The restrictions are few, and the potential benefits can be significant for the account holder, including certain tax advantages, potential minimal impact on the financial aid available to the student, and control over how and when the money is spent. Given that the average annual cost (tuition, fees, and room and board) for a 4-year, in-state public college is $23,250 for the 2022-2023 tuition year, and $53,430 per year for a 4-year private college, 1 it's no surprise that college expenses can be overwhelming.įooting college bills these days often takes every source of potential funding available to a parent, and there may be no better place to start than by opening and contributing to a 529 savings plan account. Whether you've got toddlers, teenagers, or even grandchildren, one thing is certain: Paying for college seems to get more expensive every year. Control the money and choose among many investment options.Be more flexible thanks to fewer account restrictions.
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