Choose a plan
- Compare your state's 529 (tax break may apply) vs. other states' plans.
- Look at fees and investment options (index funds, target-date).
- Open the account; designate the beneficiary.
Contribute and invest
- Set up automatic contributions if you can.
- Choose an age-based or static portfolio based on when you'll need the money.
- Grandparents or others can contribute; check gifting rules.
When it's time to use it
- Use 529 funds for qualified education expenses (tuition, fees, room and board, etc.).
- Keep records for tax reporting.
- If there's leftover money, consider changing beneficiary or using for other qualified uses.