Because of their many potential benefits, 529 plans can be helpful for families when it comes to estate planning.

In addition to helping with educational costs, a 529 plan can also be a valuable estate planning and retirement savings tool.

Prior to 2018, the estate tax exemption was under $6 million ... If you distribute funds from a 529 plan for non-qualified expenses, you’ll pay a 10% withdrawal penalty on the earnings portion ...

Please note: Many 529 College Savings plans now have a digital distribution option (electronic ACH) which saves time and improves transparency with real-time payment tracking. When requesting a ...

A mericans have amassed $450 billion for educational expenses in 529 plans as of August 2024, according to the Education Data Initiative. That amounts to around an average of $27, ...

The average 529 plan covers roughly 9% of college costs, with contributions varying by income. Virginia-sponsored 529 plans lead in assets and accounts. Key findings are powered by ChatGPT and ...

529 plans can also be a valuable estate planning tool, he says. "It's perfectly fine to keep money in 529s, and they've really widened the rules on qualified expenses so you can get money out of ...

In this article I explain what a 529 plan is and what the contribution caps and tax benefits mean for you in 2024 and 2025. A 529 plan is a tax-deferred savings vehicle that grows tax-free and ...

Fortunately, parents of multiple children can change the beneficiary of a 529 plan. But what do you do if you still have money left over after covering education expenses? Thanks to Secure 2.0 ...

Converting an IRA into a 529 savings plan could help you leverage state tax incentives and save money. However, you may be penalized for moving the funds from one type of account to the other.

Some families are concerned about saving too much in a 529 plan and not being able to remove excess funds without incurring a penalty. The SECURE 2.0 Act, which became law in December 2022 ...