A 529 plan is a valuable education savings vehicle. Have you considered using one?
Many people haven’t. Only about 40 percent of Americans even recognize the 529 plan as an education savings tool, and only 13 percent are actually using one, according to a 2022 survey conducted by financial services firm Edward Jones with Morning Consult, a global research company.
This lack of awareness is unfortunate because 529 plans offer potential tax advantages. And, as the owner of a 529 plan, you can switch the beneficiary, so if one child foregoes college, you can name a younger sibling or another eligible relative.
A 529 plan isn’t just for college – it can help pay for qualified education expenses at elementary, secondary, trade or vocational schools, including apprenticeship programs registered with the U.S. Department of Labor. You can even use a 529 plan to repay federal or private student loans, within limits.
State-by-state tax treatment varies for different uses of 529 plans, so consult with your tax professional before putting a plan in place.
Consider how a 529 plan can help you and your family achieve your education goals. The sooner you get started, the better.
This content was provided by Edward Jones for use by your Edward Jones financial advisor. Investors should understand the risks involved in owning investments. The value of investments fluctuates, and investors can lose some or all of their principal.