05/20/2026
If you’re the parent of a younger child, recent high school grad, or are looking to further your own education, this thought has likely crossed your mind — how exactly am I going to pay for college? One of the most popular options available to you is a 529 college savings plan. Here’s what you need to know:
❇️ What is a 529 plan?
A 529 college savings plan is a state-sponsored plan for the educational benefit of a child or adult that can help you save for college expenses. Each state has their own plan, and you’ll usually get state tax benefits from picking the 529 plan from your home state.
---
❇️ Who’s it for?
A 529 plan can be a good choice if your main goal is to use the money for college costs for you or your kids and you want high contribution limits.
---
❇️ Who can contribute and how much?
Almost anyone can contribute to a 529 plan — parents, grandparents, friends, corporations, and tax-exempt organizations. The maximum total combined contribution varies by plan, but the limits are usually over $200,000 per beneficiary.
---
❇️ What schools can this be used for and what investments are available?
The money in a 529 plan can be used at accredited public or private colleges in any state. Investment choices vary depending on the plan.
---
❇️ How will contributions be taxed?
All contributions are made after federal taxes, but contributions qualify for the $19,000 annual federal gift tax exclusion ($38,000 for joint filers).
---
❇️ What do I need to know about earnings and withdrawals?
Earnings in a 529 plan grow income-tax deferred. You won’t pay taxes on withdrawals either, as long as they’re used to pay for qualified education expenses like tuition, books, fees, supplies, equipment and reasonable room and board.
Interested in learning if a 529 is right for your needs? Contact me today.
