Three Reasons You Need to Use a 529 Plan (and Two Reasons You Don't)

Three female college students sit a table to study together.

There are many different approaches to saving for college, but 529 plans are used by more Americans than any other option — 30% of Americans use a 529 plan. It’s easy to see why, since 529 plans offer a variety of benefits. But they aren’t a one-size-fits-all solution, and it’s important to consider if they are the right plan for you and your family. Here are some key reasons to consider a 529, as well as reasons to consider alternatives.

Reason No. 1 to use a 529: Tax deferral and growth strategies.