Hylland Capital
The next generation in financial planning

Ask an Advisor Archive

Your Personal Finance Questions - Answered!

“When should I open a 529 account?”

Today is May 29th, also known as 529 day. And if you don’t know already, 529 accounts are one of the best ways to save for college expenses and because of some special offers, today is a great day to start a 529 if you have not already. Need help getting started? Then this question of the day is for you.

Today’s question is:

“When should I open a 529 account?”

Transcript - Best Time to Open a 529 Account

If setting money aside for your children’s future college expenses is a goal, saving money to a 529 account can begin immediately. Even if you don’t have children yet, you can set up a 529 account under your name, and eventually add your child as the dependent later.

And if you haven’t opened a 529 account yet, 529 day is the perfect day to start because several states are giving away bonuses for those who open up new accounts.

Before I get to the list, I will say that if you state offers tax incentives to contribute to a 529, it is almost always worth using your own state’s 529 plan up to your tax deduction limit, which will vary by each state. If your state offers no tax deduction, or you are contributing beyond your state’s deduction limit, then you can look to other state’s that offer better, more affordable plans.

This year, there are 6 states offering bonuses for those who set up new accounts today:

 

Most of these deals end today, or by the end of the month, so don’t procrastinate!

Matt Hylland