Effective Plan Dates: Jan 1, 2025 - Dec 31, 2025

529 College Savings Plan

Using a 529 Plan can make it easier to save for the future with benefits designed to help you reach your unique savings goals. 529 Plans are accounts specifically designed to help you save for education expenses in a tax-advantaged way. Anyone who wants to save for a child’s education can open a 529 plan account.

 

how the plan works

  • You create and control an account on behalf of your beneficiary, or future student.
  • You make contributions to your account using after-tax dollars.
  • If the money stays in the account, no income taxes will be due on earnings.
  • When you take money out to pay for qualified education expenses, those withdrawals may be federal income tax-free—and, in many cases, free of state tax, too.

You can use your balance for expenses like:

  • Tuition
  • Fees
  • Books
  • Supplies

A 529 plan can also be used tax-free to cover certain tuition expenses at K–12 public, private and religious schools.

College Savings Enrollment Guide

Most states offer 529 plans, to find out if the state you live in participates in this type of program you can do a quick internet search to find out or contact your state representatives office.

WellSpan participates with plans to set up payroll deductions. Find information on 529 plans and how to participate on the Human Resources page on INET, by clicking on Money Matters of your Total Rewards.