What does a client gain when utilizing a 529 plan?

A 529 plan offers significant tax advantages specifically designed to encourage savings for education expenses. When a client contributes to a 529 plan, the money invested grows tax-free, and withdrawals for qualified education expenses, such as tuition, fees, books, and room and board, are also tax-free at the federal level. Many states offer additional tax benefits, including state tax deductions or credits for contributions made to the plan.

This tax-advantaged status makes 529 plans an attractive choice for families looking to save for their children's education. The ability to grow savings without incurring tax liabilities on investment gains or withdrawals strengthens the appeal of using a 529 account as a long-term financial strategy for educational funding.