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What I like about 529 College Savings Accounts

What I like about 529 College Savings Accounts

| February 29, 2024

 

Five years.  In just five years my oldest is headed off to college. Excitement and shock are my primary reactions as a parent when I think of this short timeframe. As a financial planner, my reaction is to check the balance in her 529 college savings account.  Nope—not enough to pay for college yet—can we increase the monthly savings?

We all know the costs of higher education are expensive. How can we help defray the cost for our children or grandchildren? A great option is to use a 529 college savings account.  Flexibility is my favorite feature of these accounts.

Created in 1996 and named after the 529 section of the Internal Revenue code, the account is designed to help you save for higher education expenses at an accredited school. The flexibility is with features such as:

  • being able to pay for K-12 tuition
  • changing the beneficiary to another family member
  • the variety of investment options
  • the ability of anyone to contribute to the account
  • the opportunity to convert unused funds into a Roth IRA for the beneficiary.

Join me Thursday, March 7th, 2024 at noon ET to learn more about these unique accounts and how it may fit into your financial picture for your child or grandchild.

 Click here to register for the webinar

Look forward to seeing you soon, Lynn Anne Gillen


Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing. Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.