--- title: "The 529 savings plan: A tax-smart way to fund college expenses - Brown Edwards" description: If you’re saving for college, consider a Section 529 plan. Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. (Some states do offer tax incentives for contributing.) Distributions used to pay qualified expenses (such as tuition, mandatory […] image: https://blog.becpas.com/hubfs/Imported_Blog_Media/photodune-13722712-529-college-savings-plan-concept-xs.jpg --- [Twitter ** ](https://www.facebook.com/BrownEdwardsCPAs?utm_source=BE+Website&utm_medium=Website+Icon&utm_campaign=BE+Website+Social+Icon&utm_content=Facebook) [Facebook-f ** ](https://www.linkedin.com/company/brown-edwards/?utm_source=BE+Website&utm_medium=Website+Icon&utm_campaign=BE+Website+Social+Icon&utm_content=LinkedIn) [Linkedin ** ](https://www.youtube.com/channel/UC3ReCSn6AFfdQiCUsH4oopA?utm_source=BE+Website&utm_medium=Website+Icon&utm_campaign=BE+Website+Social+Icon&utm_content=YouTube) [Youtube ** ](https://www.youtube.com/channel/UC3ReCSn6AFfdQiCUsH4oopA?utm_source=BE+Website&utm_medium=Website+Icon&utm_campaign=BE+Website+Social+Icon&utm_content=YouTube) [ Client Portal ](https://becpas.sharefile.com/Authentication/Login) [ Make A Payment ](https://becpas.com/payments/) [ Request Proposal ](https://becpas.com/request-for-proposal/) ![](https://blog.becpas.com/hubfs/Imported_Blog_Media/photodune-13722712-529-college-savings-plan-concept-xs.jpg) # The 529 savings plan: A tax-smart way to fund college expenses Published by [ Brown Edwards ](https://blog.becpas.com/author/brownedwards) on Oct 30, 2015 9:02:05 PM If you’re saving for college, consider a Section 529 plan. Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. (Some states do offer tax incentives for contributing.) Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, equipment, supplies and, generally, room and board) are income-tax-free for federal purposes and typically for state purposes as well, thus making the tax deferral a permanent savings. 529 plans offer other benefits as well: • They usually offer high contribution limits, and there are no income limits for contributing. • There’s generally no beneficiary age limit for contributions or distributions. • You can control the account, even after the child is of legal age. • You can make tax-free rollovers to another qualifying family member. Finally, 529 plans provide estate planning benefits: A special break for 529 plans allows you to front-load five years’ worth of annual gift tax exclusions and make up to a $70,000 contribution (or $140,000 if you split the gift with your spouse). The biggest downside may be that your investment options – and when you can change them – are limited. Please contact us for more information on 529 plans and other tax-smart strategies for funding education expenses. [Back to Blog](https://blog.becpas.com) ## Related Articles ## [Why You Should Boost Your 401(k) Contribution Rate Between Now And Year End](https://blog.becpas.com/boost-401k-contribution-rate-now-year-end) One important step to both reducing taxes and saving for retirement is to contribute to a... [Read More ](https://blog.becpas.com/boost-401k-contribution-rate-now-year-end) ## [How much can you contribute to your retirement plan in 2025? The IRS just revealed the answer](https://blog.becpas.com/how-much-can-you-contribute-to-your-retirement-plan-in-2025-the-irs-just-revealed-the-answer) The IRS has issued its 2025 inflation-adjusted contribution amounts for retirement plans in Notice... [Read More ](https://blog.becpas.com/how-much-can-you-contribute-to-your-retirement-plan-in-2025-the-irs-just-revealed-the-answer) ## [Why you should contribute more to your 401(k) in 2015](https://blog.becpas.com/why-you-should-contribute-more-to-your-401k-in-2015) Contributing to a traditional employer-sponsored defined contribution plan, such as a 401(k),... [Read More ](https://blog.becpas.com/why-you-should-contribute-more-to-your-401k-in-2015) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Brown Edwards", "url" : "https://blog.becpas.com/author/brownedwards" }, "dateModified" : "2021-06-01T21:25:04.309Z", "datePublished" : "2015-10-31T01:02:05.000Z", "headline" : "The 529 savings plan: A tax-smart way to fund college expenses - Brown Edwards", "image" : [ "https://blog.becpas.com/hubfs/Imported_Blog_Media/photodune-13722712-529-college-savings-plan-concept-xs.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.becpas.com/529-savings-plan-tax-smart-way-fund-college-expenses", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.becpas.com/hubfs/2021%20BE-Logo-4color-oldgold-3.png" }, "name" : "Brown Edwards & Company, LLP" } } ```