In 2024, the SECURE 2.0 Act brings significant changes to the world of retirement savings and college savings accounts that could substantially impact your family's financial future. Read more…

It might seem early to think about your 2023 taxes, but it's the perfect time to take a closer look at your financial situation and make some strategic moves that can help you minimize your tax liability come April. Read more…

Last week, in part one of this series, we discussed 529 plans and education savings accounts, which are both popular options for saving for a college education. One of the main reasons for their popularity is their tax-saving advantages. The money you contribute to a 529 account grows on a tax-deferred basis, and withdrawals are tax-free, provided they are used for qualified education expenses, such as tuition, room and board, and other education-related fees.

That said, one of the downsides of 529 plans is that they come with strict limits on how you can use the funds (for education-related expenses only), and they also have a limited range of options for how you can invest your funds, primarily in various mutual funds. For these reasons, 529 plans and ESAs aren’t always the best fit for some families looking to save for their loved one's education.