529 college plan

529 college plan
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#1

So I have no kids and I am actively getting ready to go into college this August. My question is. Should I invest in a 529 college plan for myself to get through college for the next 2 years while I am in?


#2

Welcome to the community, @vehmke888! Such a good question. Most people think of 529s as a funding option for their children (or grandchildren), not themselves — but that’s definitely an option.

The short answer to your question: It probably wouldn’t hurt to invest in a 529 plan for yourself, but don’t expect huge rewards. Since you’re starting school so soon, you likely wouldn’t see a lot of growth in the account (and you’d likely want to opt for safe investments to protect against loss).

Your state may offer a tax break for 529 contributions, which is definitely a benefit, but things can get tricky if you want to claim a different education tax credit in the future. Essentially, you can’t use the same money for both. You might want to talk with a tax professional to understand those implications.

Let us know what you decide to do! If you go the 529 route, just check that the plan would also let you withdraw money without a penalty by August.