Is a 529 college savings plan a good idea?

Is a 529 college savings plan a good idea?

Many people saving for college choose 529 plans as their investment vehicles, and that’s for good reason. 529 plans offer tax advantages that can help you allocate even more dollars to education expenses. There are a variety of plans available, and you’re not limited to just your own state’s plan.

What kind of 529 plan should I choose?

When choosing a 529 college savings plan, your choice should consider your personal situation, including your values, state of residence, risk tolerance, and investment time horizon. Ultimately, your goal is to choose the 529 plan that maximizes your funds available to pay for college.

Should I open 529 in my name or child’s name?

While 529 plans do affect college financial aid, keeping the plan in a parent’s name with the child as the beneficiary will minimize the hit, explains Mark Kantrowitz, publisher of savingforcollege.com.

Is 529 plan worth it for high income earners?

If you are a high-income earner in the fortunate position of being capped out on tax-favored retirement accounts, the tax advantages and flexibility of 529 Plans make them a nice option for that next dollar of savings.

Which 529 college plan is best?

my529 (Utah)

  • Bright Start College Savings Program (Illinois)
  • CollegeAdvantage (Ohio)
  • Michigan Education Savings Program
  • ScholarShare 529 (California)
  • Which are the best 529 college savings plans?

    Review your 529 account.

  • See if you need to adjust your savings strategy.
  • Check your account balance and track the investment performances.
  • Simplify your savings by setting up automatic deposits into your Ohio 529 account.
  • Convert your disappearing expenses into regular 529 contributions.
  • How to set up a 529 college plan?

    Create a new username and password. Connecting your Maryland Prepaid College Trust Account: If you participate in both Maryland 529 plans,you can add your Maryland Prepaid College Trust Account

  • Review your account details
  • Explore the new features.
  • Paperless Statements.
  • Online Distributions.
  • Online Exchanges.
  • GoTuitionSM Gifting Portal.
  • What companies offer 529 college savings plans?

    States promote saving for college. State-sponsored 529 plans are tax-advantaged accounts designed to help families save for college and avoid excessive student loan debt.

  • State tax incentives for employers.
  • 529 plans as an employee benefit.
  • Employee 529 plan tax considerations.