How much do you really know about 529 college savings plans? There are a lot of misconceptions about how they work. Here are some common 529 plan questions answered: 1️⃣ Can I use 529 funds for K-12 education? Yes, up to $10,000 a year for tuition at private elementary or secondary schools. 2️⃣ What if the child doesn’t go to college? You can change the beneficiary or withdraw funds (taxed and penalized only on the earnings portion). 3️⃣ Can I use a 529 for apprenticeship programs? Yes — if they're registered with the U.S. Department of Labor. 4️⃣ Can I pay off student loans with a 529? Up to $10,000 can be used toward qualified student loans. 5️⃣ Can grandparents open a 529? Yes, and recent rule changes make it easier for some to avoid hurting financial aid eligibility. 6️⃣ What if I move states? You can roll your 529 into another state's plan, but check for tax implications. 7️⃣ Are 529 plans only for college? No — they can also be used for trade schools, graduate programs, and some continuing education programs. ✅ 529 plans are great, but the rules are nuanced. Before funding a plan, check with a financial professional who understands the latest regulations and can show you how they apply to your specific situation. A 529 plan is a tax-advantaged college savings plan. Before choosing a plan, it's important to consider not only the state tax treatment but also any associated fees and expenses. Availability of a state tax deduction will depend on your state of residence, as state tax laws and treatment may vary from federal tax laws. If you make nonqualified distributions, earnings will be subject to income tax and a 10% federal penalty tax. #CollegeSavings #529Plans #EducationFunding DISCLOSURE: Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing. Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.
