Give the Gift of a 529 Plan

Learn about 529 Plans and how they can help you save.

Sure, education may not be the most glamorous gift, but it can be a practical option that greatly benefits the recipient. But what’s the best option for an education fund? Explore a 529 Plan and how the tax benefits of this plan could make it the right choice for your family.

Setting Up a 529 Plan

While anyone can set up a 529 Plan, it’s recommended that the account is in the beneficiary’s parent's name. If the account is in the beneficiary's name, they may have a more difficult time receiving financial aid.

Most states don’t require a minimum opening balance for these types of plans. Check with our office to see if you live in a state where there are balance requirements.

How can they use the funds?

Unlike other types of education savings accounts, 529 Plans funds can cover almost any educational expense. This includes all grades from kindergarten through post-graduate and apprenticeships.

Funds from a 529 Plan can also go towards expenses outside of tuition, like room and board.

Other Benefits of a 529 Plan

• It doesn't affect eligibility for financial aid
  
  
• The money added to a 529 account grows tax-free when used for qualifying educational expenses
  
  
• Depending on the state you live in, you can get a tax break for the contributions you make
  
  
• The funds are transferable to other beneficiaries

529 Plans are one of the best options for education funds as they cover almost every type of education and cover a broad range of expenses. If you have a loved one who needs help paying for their education, consider creating a 529 Plan for them.

It may not be an exciting gift now, but in a few years, when their student debt is diminished or nonexistent, they’ll be thanking you.

When you’re ready to open a 529 Plan for your loved ones, contact the office.

Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer’s official statement and should be read carefully before investing.

Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state's 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investing in any state's 529 Plan.