529 plans

Saving for college is a priority for many families today, and a 529 plan gives you the ability to save for higher education expenses while receiving tax benefits not found in other investment options.

529 plans are state-sponsored savings plans. They are usually invested in mutual funds, so you have the ability to decide the level of risk you're willing to accept to achieve your college-savings goals.

Here are some reasons why you may want to use a 529 plan for your college savings goals:

Depending on the state you reside in and the plan you enroll in, your contributions may qualify for a state income tax deduction.
Any earnings will grow tax-deferred.
Withdrawals used to pay for qualified educational expenses may be received income-tax free.
Many can be started with as little as $25 a month.
Money may be transferred from one eligible family member to another eligible family member without experiencing any adverse tax consequences.