What is a 529 Savings Plan?

What is a 529 Savings Plan?

There are a lot of options to consider when thinking about financing future education for the young people in your life! With so many types of savings plans, what is the best one to choose? One option is a 529 savings plan. A 529 is a safe and easy way to make the most of the money that has been set aside for educational purposes.

A 529 plan is a flexible and tax-advantaged way to save for future educational expenses! A 529 often has a variety of investment options to fit your needs and has potential advantages over other types of savings accounts. This type of strategy can be used in lieu of or in addition to a traditional savings account, depending on your financial goals.

• Flexible Contribution limits
  • Anyone can contribute on any budget! As little as $25 a month per investment option and up to $505,000 maximum total contribution per beneficiary
• Tax advantages
  • Federally tax-exempt growth and earnings
  • WI 529 plans (EdVest & Tomorrow’s Scholar) offer tax-exempt growth and earnings as well as a WI income tax deduction
• Other benefits
  • No time, age or income limits for contributions
  • Covers most expenses at most schools (primary, secondary, and post-secondary)
  • Protected from claims from creditors

Working with a representative, you can discuss different investment strategies that might be best for you. Typically, investment strategies are chosen based on age, risk level or your own specific circumstances by building your own portfolio. As college and other education goals get closer, you decide how and when to rebalance your investments.

For more information on 529 investments, contact a WESTconsin Investment Advisor today! Or watch this helpful video for more information:

Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to member. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee.

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