529 College Savings Plan
What is a 529 plan?
A 529 plan is a college savings plan sponsored by a state or state agencies, that can be used for qualified education expenses. Each state runs their own 529 plan so tax benefits and incentives may vary between each state. You may choose to participate in any state’s plan. If comparing various state plans, be sure to review plans for your own state as some states offer tax credit or deductions for state residents.
529 Plan - Qualifies Expenses
Funds can be used for a broad range of qualified education expenses, including tuition, room and board, books, and even certain technology expenses.
Find information about each state’s 529 savings plans in the link below:
Forbes Advisor: “Compare 529 Plans By State”
What is a 529A/ 529 ABLE account?
Also known as an ABLE account, this plan is a tax-advantaged savings account designed to help individuals with disabilities and their families save for disability-related expenses. 529 ABLE accounts provide a valuable tool for individuals with disabilities and their families to save for the unique and often significant costs associated with living with a disability. As regulations and details may change over time, it's advisable to check with the appropriate financial and legal professionals or the relevant state agency for the most up-to-date information.
“ABLE“
The "ABLE" in ABLE account stands for Achieving a Better Life Experience. These accounts were created by the federal Achieving a Better Life Experience Act of 2014.
529 A/ ABLE - Qualified Expenses
Funds from an ABLE account can be used for a wide range of disability-related expenses, including education, housing, transportation, healthcare, assistive technology, and other designated disability-related expenses. It provides flexibility in covering the costs associated with living with a disability.
Find more information for each state and compare state ABLE accounts in the link below:
ABLE National Resource Center: Compare State Programs
Section 126 of the SECURE 2.0 Act allows for tax and penalty free rollovers from 529 accounts to a Roth IRA, under certain conditions, effective January 2024. Beneficiaries of 529 college savings accounts would be permitted to rollover up to $35,000 over the course of their lifetime from any 529 account in their name, to their Roth IRA. These rollovers are also subject to Roth IRA annual contribution limits in the 529 account must have been open for more than 15 years.
