A 529 Savings Plan is an investment account that provides a flexible and tax-free way to save for college and / or K-12 expenses. There are two types of 529 plans: college savings plans and prepaid tuition plans. The “Dream Big 5/29 Day Drawing to Win $5,529” event was created to celebrate National 529 College Savings Plan Day on 5/29 (May 29). Investment earnings are not taxed as long as they are used for qualified education expenses, including tuition, fees, room, board, books and supplies. A tax-advantaged 529 college savings plan can be used to pay for college, but not all expenses qualify.Withdrawals from 529 plans are called distributions, and they must be … If a student's educational institution isn't re- If the account is a prepaid tuition plan, funds can cover only tuition and mandatory fees, not room and board. While 529 account rules vary by plan, funds generally can be used only for qualifying educational expenses. 529 plans may also be used to save and invest for K-12 tuition in addition to college costs. You can spend the money you’ve saved on expenses directly related to your education costs, including:   Almost every state has at least one 529 plan. For starters, a grandparent can start a 529 college savings fund by giving up to five years’ worth of contributions – the maximum is $75,000 – in one shot. If you are going to invest your money in a my529 account, we encourage you to learn how our college savings plan works. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. Anyone can contribute to a Section 529 plan, regardless of how much money they make; however, they do need to be aware of U.S. gift tax limitations and understand how larger gifts may affect their eventual estate taxation.

For the rest of us, a 529 plan “can be an interesting way to pass wealth down to future generations,” Falcone says. Remember to build in time for processing. If you're enrolled in a plan through a financial advisor, contact them when you're ready to withdraw funds. That limit is doubled for couples. The Program Description explains the investment options, rules on contributions and withdrawals, tax benefits, fees, and risks.

A 529 plan is a tax-advantaged savings plan designed to help pay for education. Building Wealth for Decades. If you have a direct 529 plan, contact the plan administrator for withdrawals. Do not invest with my529 until you read the Program Description. Yes, your child can use a scholarship to pay for college expenses without jeopardizing any 529 plan savings.

Another withdrawal option: You could have the money distributed from the 529 account to …