Post-high school education is one of the biggest expenses people face in their lifetime. 529 plans were created to help parents, future students, friends, and family save money tax-free for qualified higher education expenses.
There are two kinds of 529 plans: prepaid tuition plans, which allow you to essentially pay for tomorrow’s tuition at today’s price, and 529 investment plans, which work much like a Roth IRA. You contribute after-tax dollars, which are invested per your direction. Any gains realized are tax-free at withdrawal, as long as they are used for eligible education expenses. Families can choose to save in one type of plan or the other, or both, to diversify their college savings.
Washington College Savings Plan offers both types of plans. 529 investment Plans, like the DreamAhead College Investment Plan, allow you to pick an investment option and save money based on the market’s performance. 529 Prepaid Plans, like Guaranteed Education Tuition (GET), allow you to purchase tuition units at a set price today and use them in the future to avoid long-term tuition inflation and stock market risk.
No matter your budget or timeline, the DreamAhead plan is designed to help you reach your education goals. You can open an account for yourself, a child, or a loved one. It only takes $25 to get started. If you already have a GET account, you can also open a DreamAhead account, or you can roll over your GET account to DreamAhead.
The GET program, Washington’s 529 prepaid college tuition plan, guarantees the value of your account will keep pace with the cost of college tuition, no matter how much it changes in the future. The earlier you start, the more time you have to save and the greater the opportunity for increased value of your GET account. GET account values are measured in “units,” where 100 units equals the cost of one year of resident, undergraduate tuition, and state-mandated fees at Washington’s highest priced public university. You can buy units beginning November 1, 2022 until May 31, 2023.
For Additional Information
529.wa.gov
LYNN CASTLE