05/29/2026
🎓 Happy National 529 Day!!
In this quick overview, Katie Sinclair explains how 529 plans work, what they can be used for, and why many families consider them as part of their education savings strategy. Here are the basics—broken down simply.
Want to explore if a 529 fits your plan? Give our office a call at 217-582-4343. We’re here to help you every step of the way.
The fees, expenses, and features of 529 plans can vary from state to state. 529 plans involve investment risk, including the possible loss of funds. There is no guarantee that an education-funding goal will be met. In order to be federally tax free, earnings must be used to pay for qualified education expenses. The earnings portion of a nonqualified withdrawal will be subject to ordinary income tax at the recipient’s marginal rate and subject to a 10 percent penalty. By investing in a plan outside your state of residence, you may lose any state tax benefits. 529 plans are subject to enrollment, maintenance, and administration/management fees and expenses.