Report post

What is a 529 college savings plan?

Also known as 529 college savings plans, these are tax-advantaged investment accounts designed for education savings. They work much like a Roth 401 (k) or Roth IRA by investing your after-tax contributions in mutual funds or similar investments. 529 plans offer several investment options from which to choose.

Should you invest in a 529 plan?

If you like the idea of saving for education expenses while also getting tax-advantaged investment growth, consider a 529 plan. A 529 plan is a tax-advantaged vehicle to save for college and trade and vocational courses participating in U.S. Department of Education student aid programs. You can even apply 529 funds to qualified K-12 expenses.

How does a 529 plan work?

529 plan funds are held at a brokerage, and owners can choose investments, adjusting risk levels based on the beneficiary's age. Investors are not required to use their home state's 529 plan and should consider fees, investment options and tax benefits when selecting a plan.

The World's Leading Crypto Trading Platform

Get my welcome gifts