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529 education savings

Deepen client relationships with a smarter path to education savings.

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When it comes to saving for future education, there is no time like the present. A 529 savings plan powered by Vestwell can help you support your clients’ goals.

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FAQ

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A 529 plan is a tax-advantaged savings plan designed to help individuals save for college. 529 plans are sponsored by states and are named after Section 529 of the Internal Revenue Code. Each 529 account must have a designated beneficiary, who will incur the educational expenses and must meet relationship criteria to the account owner.

529 funds can be withdrawn federally tax-free as long as they are used for the designated beneficiary's qualified education expenses, including, but not limited to, tuition, fees, books, and room and board.

Currently, all direct-sold 529 plans are eligible plans. To receive contributions, you must have a 529 college savings plan approved by Gradifi. If you do not currently have an approved 529 account, you may open a new direct-sold 529 account and then register it with Gradifi.

Vestwell combines enterprise-grade security, rigorous compliance standards, and deep policy fluency to protect client data and ensure ongoing regulatory alignment.

529 plans offer potential tax advantages, including tax-deferred investment growth and tax-free withdrawals for qualified education expenses. Some states may also offer state tax deductions or credits for eligible contributions. Tax benefits vary by state and individual circumstances, so it’s important to review your state plan details or consult a tax advisor.

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