Motley Fool Money Choosing a 529 and How Does Your 401(k) Compare
7 snips
Jul 26, 2025 
Martha Kortiak Mert, COO at SavingForCollege.com, shares her expertise on the ever-evolving world of 529 college savings plans, highlighting their expanded uses beyond just college expenses. She discusses choosing the right plan, the impact of these changes on K-12 tuition, and how ownership affects financial aid eligibility. The conversation also delves into comparing 401(k) plans to national averages and whether it's time to invest in small-cap stocks. Plus, strategies for utilizing your upcoming financial raise are explored.
AI Snips
Chapters
Transcript
Episode notes
529 Plans' Expanded Uses
- Use 529 plans to pay for growing educational expenses including K-12 tuition, tutoring, standardized tests, and post-secondary costs.
- Qualified expenses now cover trade schools, certifications, and continuing education fees.
Choosing the Right 529 Plan
- Start by checking if your state offers a tax benefit for using its 529 plan and decide accordingly.
- If your state's plan is not ideal, compare and consider other states' plans to maximize benefits.
Flexibility of 529 Transfers
- Open your state’s 529 plan to get tax benefits, then consider transferring to another 529 or opening a new one after moving.
- It’s flexible and practical to have multiple 529 plans, especially for multiple children.