Unlike with a 401(k) plan, you can withdraw as much as you want from your 529 plan at any time. But your 529 plan withdrawal could hit you with severe tax penalties if you use it on nonqualified expenses.
While tuition is the main qualified expense you think of when you get a 529, there are other tangential education expenses that will also qualify.
529 plan benefits abound no matter which type of plan you choose. Read on to get a full understanding of what 529 plans can do for you.
We’ve broken down nine of the best 529 plans.
Unlike with 401(k) plans and other retirement savings accounts, the IRS does not set annual contribution limits for 529 college savings plans. Instead, the states that sponsor individual 529 plans set parameters for the life of the plan.