529 Plan Details:
Enter your state:
World's Simplest College Calculator:
How old is your child?
Find a 529 Pro:
Enter your zip code:
Enroll In a 529 Plan:
Truth be told - Common 529 plan misconceptions
Listed below are six common misconceptions regarding 529 plans that were featured as True/False questions in our Annual College Savings Survey. The results showed that there are still many people who are unclear about the functionality of 529 plans. In this post, we will reveal the correct answers and help clear up some of the confusion.
1. I must use the 529 plan offered by my state: FALSE
Percentage of respondents who answered correctly:
- 93% of those who currently have a 529 plan
- 74% of those who do not have a 529 plan
When opening a 529 account, itís a good idea to look into your own stateís plan first since many states offer state income tax breaks to residents. However, donít write off out-of-state plans. You may find better investment options and lower fees and expenses elsewhere. Although you could miss out if your state offers tax breaks, you will still reap the benefits of federal tax-free earnings and withdrawals no matter where your plan is based.