Investing in education is one of the most valuable decisions you can make—for yourself or someone you care about. Whether you’re planning to return to school, help a child attend college, or support a loved one’s learning journey, now is the perfect time to start saving.
A 529 savings plan* is one of the most effective tools available to support a wide range of educational goals and help ease the financial burden.
What is a 529 Savings Plan?
A 529 plan is a state-sponsored investment account designed to encourage saving for education. It offers significant tax advantages and can provide long-term financial support for a variety of educational costs.
Key Features:
- Tax Benefits: Contributions grow tax-deferred, and withdrawals for qualified education expenses like tuition, fees, books, and room and board are federally tax-free.
- Flexibility: Funds can be used for K-12 tuition, two and four-year colleges, trade schools, and vocational programs.
- Accessibility: Anyone can open a 529 account, including parents, grandparents, other relatives, and even friends. You can also open an account for yourself if you’re planning to pursue additional education or training.
- Control: The account owner designates a beneficiary but retains full control over the funds until they’re withdrawn.
A 529 savings plan makes it easier to plan ahead for the cost of education, no matter what path you or your loved one takes. To learn more about 529 savings plans, visit the IRS’s website.
Additional Ways to Finance Education
In addition to saving through a 529 plan, students and families may consider various financial aid options, including scholarships, grants, work-study programs, and loans. Completing the Free Application for Federal Aid (FAFSA) is the first step to unlocking financial assistance. For more information about FAFSA and to access the application, visit the Federal Student Aid website.
Need funds more quickly? A Home Equity Line of Credit can help you use the equity in your home to fund college expenses, home renovations, travel expenses, or other worthwhile purchases.
*Please note that 529 Plans are not FDIC insured and are not guaranteed by Needham Bank and may lose value.
