Using a 529 Plan? Here’s What to Keep in Mind

As the school year progresses, ensure you’re using the money for qualified expenses and keeping track of documentation. Taxes and options for unused funds are also considerations.

A college student studies in a university library.
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If you have a 529 plan — a tax-exempt education savings account — you may already be tapping it this school year or considering tapping it soon. In the process, you’ll want to examine your long-term education goals, understand what constitutes as a qualified expense and have a tax-minded strategy for withdrawal. Here are a few considerations to keep top of mind while using your 529.

Remember your goals

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Julie Virta, CFP®, CFA, CTFA
Senior Financial Adviser, Vanguard

Julie Virta, CFP®, CFA, CTFA is a senior financial adviser with Vanguard Personal Advisor Services. She specializes in creating customized investment and financial planning solutions for her clients and is particularly well-versed on comprehensive wealth management and legacy planning for multi-generational families. A Boston College graduate, Virta has over 25 years of industry experience and is a member of the CFA Society of Philadelphia and Boston College Alumni Association.