Here’s how they work:
• Tax-free growth — Earnings grow exempt from federal (and often state) taxes when used for qualified education expenses
• Immediate use — Unlike college-focused savings, 529 funds can be deployed starting at kindergarten
• Generational gifting — Grandparents and other relatives can contribute annually per parent without triggering gift taxes, helping to accelerate savings
The key is starting early. Even small, automated monthly contributions can compound significantly over a child’s school years. By integrating a 529 plan into your wealth strategy, you have the opportunity to transform tuition anxiety into actionable progress.