(Updated February 9, 2024) - Families often wonder how 529 plans affect financial aid and how the two work together. The answer depends on a couple of key questions: who owns the plan and when withdrawals are taken. In most cases, your 529 plan will have a minimal effect on the amount of aid you receive and will actually end up helping you more than hurting you.

(December 7, 2021) The following is an article originally published on Chattanoogan.com. Some tax exemption limits have been updated for 2022.

Funding college expenses for children remains one of the biggest savings goals for many adults. 529s are one of the most effective education savings plans due to the flexibility and important tax advantages they provide. But like any investment vehicle, there are important considerations you should keep in mind.