Last Updated: November 21, 2025
What is a 529?
Tax-advantaged
Tax-free growth for education
State-sponsored
Each state offers plans
Flexible beneficiary
Can change to another child
High contribution limits
$300k+ in most states
No income limits
Anyone can contribute
Qualified Expenses
Tuition & fees
College or K-12 ($10k/yr)
Room & board
If enrolled half-time
Books & supplies
Required materials
Computers
For educational use
Student loan repayment
Up to $10k lifetime
Benefits
Tax-free growth
No federal tax on earnings
State deductions
Many states offer tax breaks
Estate planning
Reduce taxable estate
Control
Owner controls funds
💡 Pro Tip:
Start early to maximize compound growth!