For many of us, saving for college is a major financial investment. At times, it can seem overwhelming. Now is a good time to plan properly so it doesn’t have to be.
Using a 529 plan may be a good strategy to help cover those costs. A 529 plan is a tax-advantaged savings plan sponsored by states, state agencies or educational institutions. Earnings in a 529 plan grow on a federal income tax-deferred basis and may also be eligible for state tax deductions.
You can use 529 funds to help pay for qualified education expenses, including books, supplies and special services, as well as tuition, room and board, and equipment.
Here are some helpful tips: