Education Planning
Education Planning
Tuition costs for American, public institutions have risen nearly 40% since 2010 (College Tuition Inflation Rate, 11/26/2025). The right education planning can help you keep up with increases in tuition and education related room and board costs.
529 Plans
529 Plans are state-sponsored plans that help you save for education with tax-advantaged accounts. Depending on where you live and your specific 529 savings plan, you may be able to pay for qualified education expenses without paying federal or state income taxes.1 A 529 plan may also impact your student’s financial aid eligibility.
Important Disclosures Regarding 529 Plans
The state where you reside or pay taxes may offer its own qualified state tuition program under Section 529 of the Internal Revenue Code with state tax advantages or other benefits exclusively for its residents or taxpayers. You should carefully review information about and consider such a plan, if any, as well as any tax advantages and benefits it offers before choosing to contribute to it or another 529 plan program. Depending on your state of residence, a particular 529 savings plan program might not afford you state tax benefits. As with all tax-related decisions, consult your tax advisor.
529 Plans are state-sponsored investment programs. Municipal fund securities are sold by offering statement, which is available from your registered representative. Please carefully consider investment objectives, risks, charges, and expenses before investing. For this and other information about municipal fund securities, please obtain an offering statement and read it carefully before you invest. 529 Plans are state-sponsored investment programs. There is no guarantee by the issuing municipality or any government agency.
There may be tax benefits and other advantages to plans offered by your resident state. You should consider the potential benefits (if any) offered to residents by your own state’s plan (if available) prior to considering another state’s plan. With very few exceptions, if withdrawals are made from a 529 Plan for purposes other than education, they are considered non-qualified withdrawals, and they are subject to federal – and possibly state – tax penalties. Specifically, the earnings portion of the non-qualified withdrawal will be included in the recipient’s gross income for federal tax purposes, the earnings will be subject to a 10% federal tax penalty, and in some states, additional state tax penalties may apply to the earnings.
As with all tax-related decisions, consult with your tax advisor. Please note that assets in a 529 Plan could impact the beneficiary’s ability to qualify for grants and student loans. Annual asset charges for a 529 plan may be higher than corresponding share classes of underlying mutual funds.
SECURE Act 2.0
The SECURE Act 2.0 added new flexibility for certain long‑standing 529 college savings accounts, including the ability—under specific conditions—to roll over unused funds to a beneficiary’s Roth IRA. There are limitations and planning considerations to discuss with a financial professional. Schedule a complimentary consultation with our Team for more information specific to your situation.
Managing Your Wealth
Different investment products can help you work toward a variety of financial goals, including retirement and estate planning, as well as education funding. You should be aware of the risk/return potential of any investment products you consider purchasing and select appropriate investment products based on your goals, comfort with risk, timeline, and a product’s fees and tax considerations.
Our Wealth Management Advisors can guide you through the growing number and complexity of available options. It is our job to ensure your financial plan fits your short- and long-term financial goals.
