A 529 Plan Strategy That Could Help Boost Your Financial Aid

Saving for college for all your kids in one 529 savings account could mean they'll get less in financial aid. Separate custodial 529s might be a better bet.

The numbers 529 on toy blocks on top of textbooks next to a piggy bank wearing glasses.
(Image credit: Getty Images)

Since their creation in 1996, 529 college savings plans have become a popular vehicle to help parents save money to help pay for their children’s ever-increasing higher education costs.

Assets in 529 plans grow tax-deferred, and distributions from them are tax-free as long as they’re used to pay qualified educational expenses for the beneficiary, such as tuition, fees and books.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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David Jaeger, CFP®
Financial Adviser, Canby Financial Advisors

David Jaeger, CFP®, is a financial adviser at Canby Financial Advisors in Framingham, MA. David enjoys learning about each client’s unique situation and specific goals so that he can work with them to provide clarity and relieve stress. He earned his BA in History from Loyola University Maryland.

Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.