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College Savings: Invest in a Brighter Future

College Savings: Invest in a Brighter Future

May 27, 2022

May 29th is observed across the United States as 529 Day or 529 College Savings day and was introduced to increase awareness of these plans and encourage families to start saving toward future education expenses.

What is a 529?

529 plans are a great tool for investing toward education and differ from other savings plans as they offer tax benefits making it easier for families to save for future education and training costs.  Anyone can open and contribute to a 529 account and funds can be distributed tax-free for qualified education costs including tuition, room, board, textbooks, and other academic expenses.

Why a 529?

  • Support a lifetime of learningHelp meet your family's education needs, at any stage of life.
  • Enjoy unmatched benefits. Tax-advantaged treatment applies to savings used for qualified education expenses
  • Flexibility. The account owner, rather than the beneficiary, maintain oversight of account assets and determine the timing and amount of distributions.

Who can contribute?

  • Parents
  • Grandparents
  • Beneficiaries
  • Extended family and friends

Plan beyond a traditional four-year college education
Use a 529 account for a broad range of qualified education expenses:

Source: Capital Group 2021


If a beneficiary decides not to go to a traditional four-year college, the 529 funds can be:

  • Used for eligible arts program or vocational trade school
  • Transferred to another 529 account (sibling, parent, in-law, etc.)

Our Approach

Our team takes a holistic approach when building your custom financial plan and will proactively discuss the addition of education savings, when and where applicable.

Have questions? Call our office and we would be happy to assist.