An Examination of Customer Satisfaction in the Tennessee BEST 529 College Savings Plan BEST 529 Coll 2025

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Worst 529 Plans Rhode Island CollegeBoundFund. Georgia Path2College. Nevada UPromise College Fund. Wisconsin Tomorrows Scholar College Savings Plan.
Top-rated 529 plans in 2025 Oregon College Savings Plan. Ohios 529 Plan CollegeAdvantage. UNIQUE College Investing Plan (New Hampshire) ScholarShare 529 (California) Pennsylvania 529 Investment Plan. my529 (Utah) New Yorks 529 College Savings Program. Alaska 529.
On the 2025-2026 FAFSA, students are not required to report cash gifts from a grandparent or contributions from a grandparent-owned 529 savings plan. Because of this, grandparents can now use a 529 plan to fund a grandchilds education without impacting that grandchilds financial aid eligibility.
The account owner of a 529 plan holds all of the legal power. They can change the beneficiary or liquidate the account (with penalty) at any time. This could be a disadvantage if the owner of your or your childs 529 plan has a change of heart about where to direct their investment.
529 Cons. If not used for college expenses, there is a 10% additional tax on earnings. If not used for qualified expenses, all earnings are taxed as ordinary income (even if the actual earnings were capital gains). The management fees for a 529 account are typically higher than the fees for comparable mutual funds.

People also ask

If the beneficiary of a 529 account doesnt go to college, you canchange the beneficiary or take a non-qualified withdrawal. If you take a non-qualified withdrawal, you will incur income tax as well as a 10% penalty tax on the earnings portionof the account.
You should definitely do it. 529s are still the best option. The pro is that all the gains are tax free, if used for educational purposes, and the con would be if your child chooses not to go to college. Really the only issue is youd have to pay tax and a penalty on the money as you take it out.

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