Whether your child is going to college or has other plans, here are four reasons to consider a 529 education savings plan.
First are tax advantages. Earnings grow federally tax-free, and many states offer tax deductions on contributions.
Second is the flexibility beyond college.
You can use 529 funds for vocational programs, apprenticeships, and even K-12 school tuition up to $20,000 yearly.
Third is the range of qualified expenses.
Beyond tuition, use 529 funds on books, computers, and eligible room and board.
And now, with recent law changes, you can even cover certain testing fees, as well as some tutoring and education therapies.
Finally, you have options if your plans change.
You can transfer the account to another family member, pay up to $10,000 in student loans, or roll funds into a Roth IRA (subject to certain limits and criteria).
Maybe it’s time for your family to consider a 529 plan.
Talk to a financial advisor to see if it can support your family’s future needs.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson, and Hawes Dickerson. Members SIPC.
