Big benefits to saving for college with a 529 plan

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Not only does the average college graduate earn upwards of 80% more on average than those with just a high school diploma (source), but 70% of Washington jobs require education beyond high school—and that number is on the rise. Here are seven benefits to saving for post-high school education with a 529 plan.

1. You can avoid education debt.
   Some 46 million Americans collectively hold over $1.7 trillion in student debt. 529 plans are a great way to avoid accumulating more of it.
2. 529 plans are for more than just college
   529 plans can be used for a wide range of educational options including trade schools, technical training, apprenticeships, or college – in Washington State, across the U.S. or worldwide.
3. Everyone has access to the same 529 benefits.
   Regardless of household income or contribution amount, all families get the same benefits and can invest in almost any 529 plan, no matter where you live or where your student will attend school.
4. You can “set it and forget it.”
   Families can select an automatic investment plan linked to a bank account or payroll direct deposit plan for low-maintenance investing.
5. You can contribute more than with other plans.
   Unlike a Roth IRA or Coverdell Education Savings Account, 529 plans have no annual contribution limits and high aggregate limits up to $500,000 per beneficiary.
6. Your 529 education savings are tax advantaged.
   Plan contributions grow on a tax-deferred basis and distributions are tax-free when used to pay for qualified education expenses. And, up to $19,000 of your plan contributions qualify for the annual gift tax exclusion.
7. You’ll get favorable financial aid treatment.
   Parent-owned or dependent-student-owned 529 plans are reported as parental assets and have a relatively minimal effect on financial aid eligibility and distributions aren’t counted as income on the Free Application for Federal Student Aid (FAFSA).