May 29 is National 529 Day, otherwise known as 529 College Savings Day. A college education can be very expensive (to put it lightly) and most folks can not afford to pay out of pocket. But with a 529 plan, a parent or guardian can invest on behalf of a child or dependent to save for school.

If you put money in a 529 account for education, withdrawal of earnings are tax-free if used for qualified educational expenses. Qualified educational expenses include tuition, fees, housing, meals and books. Many states offer a full or partial tax deduction for 529 plan contributions. They may also offer incentives and promotions to encourage families to open and contribute to 529 accounts this coming Monday for National 529 Day.

The 2017 Tax Cuts and Jobs Act (TCJA) also expanded eligibility for 529 savings plans. Up to $10,000 per year may be used for Kindergarten through Grade 12 education (public, private, or religious schools).