What Are The Top 7 Benefits Of 529 Plans? Watch Video
1. Federal Tax Benefits
Earnings grow tax-free and are not taxed when used to pay for college
2. State Tax Benefits
Over 30 states offer a tax credit or deduction for 529 contributions
3. The owner has control of the funds throughout the life of the account
Unlike some custodial accounts, the beneficiary has no legal right to 529 plan money.
4. Low maintenance
Quick and easy setup, automatic investment options, professional money management
5. Simple tax reporting
Nothing to report on your tax return until you take your first withdrawal
Investment options can be changed twice per year, and one tax-free rollover can be made in a 12-month period.
7. Everyone is eligible
No income limits, no age limits, no annual contribution limits.
Learn more about 529 plans at Savingforcollege.com.