529 plans are tax-advantaged investment accounts that let families save money in advance for a child's future education expenses. But while there are no restrictions on who can open a 529 plan on a child’s behalf, the plan’s owner will dictate just how much 529 plan money affects financial aid eligibility. And those distributions can reduce financial aid eligibility by up to 50% of the distributions’ value. There are other ways to use your 529 plan to your best advantage. Check out the full discussion for more of Kantrowitz’s tips, including advice on the best time to open a 529 plan and investing strategies for plan owners.

Source: Forbes June 19, 2020 18:22 UTC