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Should you invest in a 529 college savings plan?

For most parents looking for a way to save for their child’s college education, a 529 college savings plan is a wise choice. That’s because the money you invest in one of these accounts grows tax-free if you use the funds toward eligible education expenses. Individual states offer 529 plans.

What is a 529 plan?

A 529 plan is a tax-advantaged savings account that’s designed to help you save for education costs. Also known as qualified tuition plans, 529 plans are offered by every state and Washington, D.C., as well as some educational institutions.

Do 529 plans pay for college?

Review and compare state 529 savings plans below. In 2023, only 30% of families used savings funds, such as 529 plans, to pay for school, according to a report from Sallie Mae. If you’re interested in saving up to offset future college costs, below are tips for comparing plans:

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