Get an early upper hand saving for educational expenses with a tax-advantaged 529 plan.1 Ideal for middle- to upper-income families, 529 plans offer a flexible way to pay school costs and may help minimize student loan debt.
- Earnings are exempt from federal tax when used for qualified expenses. Non-qualified withdrawals are subject to taxes.1
- Contributions from family or even friends may be excludable up to federal gift and estate tax limits.2,3
- Use the money to pay for public, private and religious K–12 tuition as well as college expenses, including tuition, housing, computers and other supplies.
- 529 plans offer high maximum contributions that vary by state.
- There are no time or age limits on contributing to or using a 529 plan.
- Residents are not limited to investing in their own state's plan. However, tax laws vary by state so it's important to compare different 529 plans to find one that fits your needs.