529 Day: Planning for Future Education Costs
Each year on May 29, 529 Day serves as a reminder of the importance of planning ahead for future education expenses. Named after Section 529 of the U.S. Internal Revenue Code, this day highlights 529 college savings plans and encourages families to explore options available to help prepare for the rising cost of education.
What Is a 529 Plan?
A 529 plan is a tax-advantaged savings account designed to help families set aside funds for qualified education expenses. These plans are typically sponsored by states or educational institutions and can be used for a range of expenses, including tuition, fees, and in some cases, room and board. 1
While 529 plans are commonly associated with college savings, they may also be used for other qualified educational expenses, depending on the plan and current regulations.2
Why Planning Ahead Matters
The cost of education has continued to evolve over time, making early planning an important consideration for many families. Establishing a strategy for education savings can help individuals and families:
- Organize financial priorities
- Explore available savings options
- Prepare for future expenses over time
Exploring Your Options
While 529 plans are one option for education savings, there are a variety of approaches to consider based on individual goals, timelines, and financial situations. Reviewing these options can help individuals determine what may be most appropriate for their needs.
Moving Forward
529 Day is an opportunity to pause and think about the future—whether you are just beginning to explore education savings or revisiting an existing plan.
To learn more about education planning and the options available, contact our team or explore additional resources on our website.
Sources
1. IRS [URL: https://www.irs.gov/newsroom/529-plans-questions-and-answers]
2. U.S. Securities and Exchange Commission, 2026 [URL: https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/introduction-529-plans-investor-bulletin]
Disclosures
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
