As the costs of college tuition continues to increase, it is never too early to start saving for future higher education expenses. A 529 plan is a tax-advantaged investment that simplifies saving for college or other post-secondary training for a designated beneficiary, such as a child or grandchild. 529 plans allow for tax-free growth and withdrawals when the funds are used for education expenses, such as tuition, books, and room and board. Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA) accounts can also be used to help save for a minor’s anticipated education expenses.
