Starting an education savings plan early allows more time for your investments to grow through compound interest, potentially reducing the financial burden when your child reaches college age.

A 529 Plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Contributions grow tax-free, and withdrawals are tax-free when used for qualified education expenses like tuition, books, and room and board.

Yes, 529 Plan funds can be used for other qualified education expenses, including K-12 tuition (up to $10,000 per year), room and board, books, supplies, and equipment required for enrollment or attendance.

While there are no annual contribution limits set by federal law, contributions are considered gifts for tax purposes and may be subject to gift tax if they exceed $17,000 per beneficiary per year (2023 limit). However, a special rule allows for five years of contributions to be made in a single year without incurring gift tax.

Regularly review and adjust your savings plan based on changes in your financial situation, investment performance, and education cost projections. Setting clear goals and periodically assessing your progress can help ensure you meet your education funding objectives. PFS advisory team will always be there to guide you.

529 Plan investments are typically managed by state-sponsored programs and offer a variety of investment options, including age-based portfolios, static portfolios, and individual fund options. Age-based portfolios automatically adjust the asset allocation to become more conservative as the beneficiary nears college age.