Did you know that you can benefit from a 529 plan even if you don’t have children? You can use it to save for your own education, whether it’s graduate school, continuing education courses, or a career change that requires additional training.
Contributions to 529 savings accounts are exempt from federal taxes. Every state offers at least one option for this type of savings account.
If you know you’re going to go back to school at some point, saving with this type of tax-advantaged savings account can help you start to plan for those nerve-wracking tuition costs. But beware: If you withdraw these funds for a use that’s not educational, you’ll have to pay a 10 percent federal tax penalty.