529 plans are popular ways to save tax-advantaged funds for education expenses. Follow these steps to set up 529 accounts:

Create 529 Accounts

  1. Go to My Plan > Savings & Assets

  2. Scroll to "Do you have tax-advantaged retirement savings?"

  3. Click on "Add another account."

  4. Enter a detailed account name such as "Bob 529."

  5. Enter your current account balance (put "$0" if you plan to make future contributions)

  6. Select "529" for the account type

  7. If your "529" is invested, enter optimistic and pessimistic growth rates.

  8. Repeat this process if you have multiple accounts, such as one per child

Set up annual contributions

  1. Go to My Plan > Savings & Assets.

  2. Scroll to "Do you or will you save more to your accounts?"

  3. Click on "Add another savings contribution."

  4. Select a 529 account to save towards

  5. Select your monthly contribution

  6. Select your contribution timeline

  7. Select a reason

  8. Repeat this process if you have multiple accounts, such as one per child

529 Assumptions

529 accounts have annual contribution limits per contributor (contribution limits are not modeled in the tool).

529 accounts must be used for education expenses (spending restrictions are not modeled in the tool).

The majority of states do not tax contributions to 529 plans, though some do. The tool will model state deductions when they are available.

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