529 Plan
A tax-advantaged savings plan designed for education expenses.
529 plans grow tax-free when used for qualified education expenses including tuition, room and board, books, and K-12 tuition (up to $10,000/year). Contributions are made with after-tax dollars but many states offer a state income tax deduction. Starting in 2024, unused 529 funds can be rolled into a Roth IRA (lifetime limit $35,000), eliminating the old fear of overfunding.
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