Here are some Myths about 529 College Savings Plans
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There are many myths in regards to the 529 College Savings Plans.
One of the most common being that 529 funds can only be used at state colleges and universities, TransUnion says. These funds can be utilized at the college and university of your child’s choosing, as well as vocational, technical, and professional schools.
Related: Save for College with a 529 College Savings Plan
The fund can also be used for purchases including books, supplies, computers, and even room and board. Additionally, the Tax Cuts and Jobs Act of 2017 allows 529 plans up to $10,000 each year to be utilized to assist in primary and secondary education.
Another myth is that the 529 Savings Plan is that you can only set it up for your child. The truth is that you can open up an account for yourself. By doing so, you can also see some of the federal and tax benefits that come with a 529 savings account.
Related: How to Find a Financial Advisor
Also, should your plans alter course and you are not able to attend or continue with your own education, you can transfer your account to your child or spouse tax-free.
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