A 529 College Savings Plan Can Help.

What is a 529 Plan?

Unlike some other savings, a 529 college savings pan allows you to make sizable contributions. It is generally used for any qualified college or higher education expense including: tuition, room, board, fees, books, supplies, and equipment. It grows tax deferred with the possibility to withdraw money without having to pay federal and state income taxes.

Note: This depends on the plan and where you live and is used to pay for qualified higher education expenses. If not, earnings are subject to ordinary federal income tax, an additional 10% federal ta, and any applicable state income taxes. Tax benefits may be subject to certain restrictions and may affect a student’s eligibility for financial aid.