Unused 529 Accounts
What can you do with an unused 529 account?
A 529 account is a tax-advantaged savings plan designed to help families save for education expenses. These accounts are named after Section 529 of the Internal Revenue Code.
529 accounts come in two basic types: prepaid tuition plans and college savings plans. Prepaid tuition plans allow families to lock in today’s tuition rates for future use, while college savings plans allow families to save and invest money for future education expenses.
Contributions to a 529 account are made with after-tax dollars, but the earnings in the account grow tax-free. When funds are withdrawn for qualified education expenses, like tuition, fees, books, and room and board, the withdrawals are also tax-free. This can make 529 accounts a powerful tool for families looking to save for […]