May is 529 Month: Five action steps every family should take

May’s 529 Month is a timely reminder for families to revisit education savings plans as college costs keep rising and 529s celebrate 30 years of tax-smart growth. These accounts remain attractive because they offer tax-deferred growth, potential state tax benefits, and greater flexibility than many investors realize.

For advisors, the opportunity is to encourage clients to check contribution levels, review investment allocations as college nears, and make sure gifting strategies are working efficiently. Families may also want to rethink how broadly they use these plans, since eligible expenses now extend beyond traditional college costs in some cases.

The main risk is complacency. A plan that was appropriate years ago may no longer match today’s goals, time horizon, or market conditions. A brief review now can help investors stay aligned with their education funding strategy and make better use of available benefits.