This day is meant to remind families and friends that it has never been easier to help save for a child’s future. By contributing to a 529 savings plan, you help prepare a child for whatever path they choose. Earnings grow tax-free on the federal level, and in most states, if savings are withdrawn to pay for qualified tuition and other expenses.
There are a few reasons why 529s are one of the more flexible and attractive ways to save. They can be used for 4-year or community colleges, career and technical schools, and registered apprenticeships. In addition to tuition and fees, they can cover those expenses that add up, such as room and board, fees, books, computers. And they can be used for qualified institutions abroad.
529 savings can also be used by another family member – or even yourself – for retraining or getting a new certification. If your child does incur debt, 529 account funds can be used to pay up to $10,000 in qualified student loans per beneficiary.
And, it’s easy: grandparents, friends, and other family members can contribute as little as $10 to a child’s account through online gifting tools, crowdfunding platforms, or E-gift cards.