05/20/2026
May graduations are a reminder that education costs are rising and planning ahead matters more than ever. If you have young children in your life—yours, grandchildren, nieces, nephews —you can have time to make an impact.
Two common savings options are worth considering. A 529 Plan offers tax-free growth for qualified education expenses, but non-qualified withdrawals may incur penalties, assets can affect financial aid eligibility, and some plans have state-specific restrictions. A Uniform Gift/Transfer to Minors Account is more flexible. Funds aren't restricted to education, but assets are subject to taxes that can impact overall growth—and once the minor reaches adulthood, they gain full control of the assets. Understanding the trade-offs of each can help you choose the option that best fits your goals.