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How do I use my 529 plan money?

For most accounts, you can set up recurring transfers from your bank account to your 529 plan, similar to auto bill pay. How you use your 529 plan money depends on the plan type you choose. If you select the prepaid tuition plan, your money is usually reserved only for tuition and fees.

Who can open a 529 plan account?

Anyone who wants to save for a child's education can open a 529 plan account. There may be benefits to opening an account. The account owner keeps control of the money, can make investment decisions, and can even change the beneficiary if plans change. There may be estate tax benefits in some cases.

Can a 529 plan pay for college?

You can use a 529 plan to pay for college, K-12 tuition, apprenticeship programs, and even student loan repayments. Any leftover funds can be used in different ways, including funding a Roth IRA. There are two primary 529 plans: education savings plans and prepaid tuition plans.

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