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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.

How do I use my 529 plan money?

Many accounts let you make an initial deposit so your money gets invested right away (if you pick the savings plan). 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.

Can a 529 account be used for Education?

Brokerage account funds can be used for any purpose, including education, without restrictions or penalties. Section 529 plans have specific transferability rules governed by the federal tax code. The owner may transfer funds to another 529 plan once per year unless a beneficiary change is involved.

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