Can I start a 529 plan for myself?
I am looking to start saving money to advance my education. Can I start a 529 Plan for myself?
Yes you may.
Just keep in mind that if you change your mind and decide not to go back to school, you may be owe a 10% penalty if you withdraw the money for non-school expenses. A 529 Plan is similar to a ROTH IRA, all the money you put in has already been taxed and the earnings can be tax-free. With a 529 Plan, as long as you use it for school expenses the earnings will be Federally tax free, there may be State taxes depending on if you go to an in-state college or out of state. Also, if you start a 529 and decide not to use it for college expenses you can use those funds for another person who will use them for college. If you use the money for non-college expenses then you will pay taxes on the earnings. Most fund companies offer 529 Plans and all states offer them as well. Ask whoever you set the plan up through for more details and always consult a tax advisor before withdrawing money.