529 Plans: Not Just For College

If you’ve heard of 529 plans, you might think they can only be used to help pay for college. And you wouldn’t be alone: Less than one-third of adults properly identified that a 529 plan can be used for more than just higher education, according to a survey by Morning Consult and Edward Jones. But what are these other expenses?

Before we get to them, let’s review the main benefits of 529 plans. Contribution limits are high and earnings can grow tax-free if withdrawals are used for qualified education expenses such as tuition and room and board. (Withdrawals for non-qualified distributions are s...