What Are The Benefits of Saving For College in a 529?

What Are The Benefits of Saving For education costs in a 529?

The first is that your investment grows tax free. The second benefit is that withdrawals aren’t taxable as long as they are used to pay qualified higher education expenses. Third, the owner of the account remains the owner of the account until they die - there is no other time limit to the account. The funds aren’t passed to the beneficiary at a specific age. Some states also may offer tax deductions or tax credits in the year you put money into your 529. There are other accounts that used to be used for college savings, but have taken a backseat to the 529 because of the benefits described above.

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