529 Basics

What Are 529 Plans?

529 Plans (aka “Qualified Tuition Programs”) were created by Congress in 1996. In short, 529 Plans enable a person (a parent, friend, or relative) to put money into an account that will be used to fund future educational expenses for a beneficiary (e.g. a child or relative).

What Can The Funds Be Used For?

The funds must be used for “qualified education expenses of the designated beneficiary” (think tuition, room/board, fees, and books). The funds can be used for qualified education expenses related to college or graduate school.

More recently, Congress allowed 529 funds to be used to fund qualified K-12 school expenses (again: tuition, room/board, fees, books).

How Do I Open A 529 Plan?

Opening a 529 account is fairly easy. We suggest folks review the table here for specific information on recommended plans.

What Plan Should I Pick?

Each person’s situation is unique. If your state offers a tax benefit, it is probably best to open an account with your state’s 529 Plan.

If you have specific questions, we offer free 1:1 sessions. You can book directly with us or send us a message.

The Federal law that created 529 plans in 1996. Boring but important. Credit: US Code of Federal Regulations