Debunking Common Myths About 529 College Savings Plans

Monday, 11 March 2024, 16:00

Learn the realities behind the top misunderstandings about 529 plans and how they can actually help you save for your child's college education. Discover the flexibility and benefits of 529 accounts to secure your financial future. Don't let misconceptions hold you back from utilizing this powerful saving tool.
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Debunking Common Myths About 529 College Savings Plans

Debunking Common Myths About 529 College Savings Plans

Do you feel like it's too late to open a 529 plan for your child? Think again! Check out the myths and realities of 529 college savings.

1. Myth: It's too late to open a 529 plan after your child reaches a certain age

Reality: It's never "too late" to save for college in a 529 plan. Even if your child is already a senior in high school, you can still put money into a 529 account.

2. Myth: You get a federal tax deduction for 529 plans

Reality: Sorry, there is no federal tax break for putting money into 529 plans.

3. Myth: 529 plans can only be used for four-year colleges and universities

Reality: The money saved in a 529 account can be used to pay for a wide range of higher education programs.

4. Myth: 529 plan money is "use it or lose it"

Reality: There are options for unused 529 funds, including switching the beneficiary or rolling over into a Roth IRA.

5. Myth: Only parents can put money into a 529 plan

Reality: Anyone can open a 529 plan for any beneficiary, offering a flexible way to save for college.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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