A 529 plan is an excellent way to invest in your child's or grandchild's education while doubling as a highly effective estate planning strategy, thanks to its valuable tax benefits and flexibility.
Money in a 529 plan grows free from federal or state taxes, as long as withdrawals are for qualified educational expenses. Because of this favorable tax treatment, 529s are one of the best ways to save for education. Plus, unlike other gifting strategies, 529 plans allow you to maintain control over the funds and contributions to a 529 plan — $19,000 per beneficiary in 2026 or $38,000 for married couples — are considered gifts and can help reduce the size of your taxable estate.
