529 Benefits

A 529 plan is an good idea if your parents invested earlier in your life, however, there are some rules that apply to what you can do with the cash payments. The distrubition from a 529 can only be used for qualified educational expenses, such as tutition, fees and room and board. Moreover, 529 plans do differ from state to state, you may lose available state tax benefits, if you plan on attending an out-of-state college. Now with that being said, if you are finished with your education and you have left over money, consequently, your’re treated as if you took a 529 plan distribution and made a regular IRA investment. So the 529 plan has some benefit, if you are pretty sure you want to attend a certain College or University, Never the less,