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Use a 529 Plan as a Bonus Retirement Account

Here in America, we love ‘purposed’ savings vehicles. We have IRAs for our golden years/retirement. We have health savings accounts (HSAs) for our medical needs. And when it comes to saving for higher and secondary education expenses, a 529 Plan can’t be beat. There are plenty of advantages—from tax deductions to tax-free withdrawals—when it comes to using the accounts.

But like many other specialized savings’ vehicles, 529 Plans offer some interesting benefits to investors looking beyond its intended purpose. In this case, it’s an additional vehicle for retirement savings.

While it shouldn’t be your main driver for retirement investment, a 529 Plan can serve as a complement or bonus account for your retirement efforts. As such, more investors might want to consider them.

To learn more about retirement topics, visit our Retirement Channel.

529 Basics

Benefits for Retirement Too

529 vs taxable account growth

Things to Think About

The Bottom Line