Edward Jones Says 529 Plans Still Fit a Child’s Future

edward jones says a family can keep saving in a 529 plan for its 5-year-old daughter, even though college may not be her only path. The child is autistic and in a special education class, and the family has already been saving into its state’s 529 plan since she was an infant.

That guidance matters because the family says she may go to college after high school, but she may also need assistance with living and adult day programming when she ages out of high school. The advice points families toward keeping the account open while they sort out a future that may include more than one education or care option.

Slate Pay Dirt

The advice appeared in Slate’s money column Pay Dirt. It said there is little harm in continuing to save in a 529, and it pointed to several ways the account can stay useful even if a traditional four-year university does not end up being the final destination.

Slate said 529 plans can be changed to a different beneficiary down the road. It also said 529 funds can be used for K-12 expenses, community college, and some vocational schools. Those uses give the account more than one possible role while a child’s path remains unsettled.

529 Funds And ABLE Accounts

The column also said some 529 plans can be rolled over into a retirement account in some cases. It added that some health issues or a disability might qualify a person to have withdrawal penalties waived, and that 529 money might be transferable into an ABLE account.

That leaves families with a practical choice: keep saving now rather than shutting down the account because college is not certain. For this family, the immediate step is simple enough — continue the 529 while the daughter is still 5 years old and in a special education class, and keep the account available for whichever of the listed uses fits later.