College Saving Plans
College Saving Plans Client Testimonials
My husband and I have been with Langan Financial for over 10 years. With their guidance and knowledge, we (in our late 30s) have a clear and comprehensive plan on how to send our children to college and retire comfortably.
We have complete trust in the team at Langan Financial Group.
They've been nothing short of exceptional in every way, and have handled everything with care, courtesy, and patience.
Langan Financial Group has also provided key educational resources that have helped me make financial decisions to benefit my family's future. I would highly recommend them for all of your financial needs.
A note about this testimonial: The individuals providing the testimonials above are current clients of Langan Financial and were not compensated for providing their testimonials. The testimonials reflect their individual experiences and are not representative of the experience of all clients.
What is a 529 Plan?
529 Plans were created in 1996 to address the increasing cost of college tuition. To make secondary education more affordable, the government wanted to create a tax-efficient investment opportunity to minimize expenses.
Types of 529 Plans
529 College savings plan
A 529 college savings plan allows an individual to invest money and grow tax-free over time.
Prepaid tuition plan
A prepaid tuition plan allows an individual to purchase part or all of the tuition for in-state schools.
What Education Expenses Qualifies for 529 Plans?
In 2017, the federal government expanded the definition of qualified education expenses for 529 Plans. It was no longer only for college tuition, but it can now be used for:
- College
- K-12 tuition
- Apprenticeship programs
- Student loan repayments
How to Open a 529 Plan
Setting up a 529 plan is a very simple four-step process.
- Identify the right plan for you
- Identify your beneficiary for the plan
- Open the 529 account
- Build your investment portfolio
5 Benefits of a 529 Plan
A 529 Plan, if used correctly, offers tax benefits for qualified education expenses.
These funds can be used for the designated beneficiary's continued education through numerous avenues. It has several benefits including:
1. 529 plans grow federal tax-free
For Federal taxes, 529 plans will not be taxed when the money is taken out to pay for any qualified education expense.
As of January 1, 2018, tax-free withdrawals may also include up to $10,000 in tuition for expenses for K-12 schools per beneficiary.
2. 529 plans may have state-offered tax breaks.
States vary depending if they offer full, partial, or no tax deductions or credits. As of now, over 30 states currently offer either full or partial tax benefits.
3. Everyone is eligible
4. Low maintenance
A 529 Plan does not require a lot of upkeep or time. Once you get the plan set up, along with the contributions, the only thing you need to do is review its performance.
Even the tax reporting is simplified for this tool! Contributions to a 529 plan do not have to be reported on your federal tax return. You will not receive a 1099 form until you make a withdrawal.
5. 529 Plan Contribution limits
529 Contribution Limits
529 plan contributions are generally considered completed gifts for federal tax purposes. As of 2026, an individual may contribute up to $19,000 per beneficiary under the annual federal gift tax exclusion. A married couple may contribute up to $38,000 per beneficiary, provided applicable gift-tax requirements are met.
A special five-year election also allows an individual to contribute up to $95,000—or $190,000 for a married couple—and treat the contribution as though it were made evenly over five years. This election generally requires filing a federal gift tax return.
Contributions exceeding the available annual exclusion generally must be reported to the IRS and may reduce the donor’s lifetime estate and gift tax exemption, which is $15 million per individual in 2026. An excess contribution does not necessarily result in an immediate gift-tax payment. Learn more from the IRS.
Each 529 plan also establishes a maximum aggregate account balance. These limits vary by plan and generally reflect the estimated cost of qualified education expenses. Once the limit is reached, additional contributions may be restricted, although the account may continue to grow. State income-tax deductions or credits may have separate annual limits.
What Does a 529 Advisor Do?
A 529 plan advisor will work with you to ensure your goals and plan tactics are aligned. In addition, the advisor should be monitoring your investments to ensure they are performing as needed.
If any investment option is not performing well, the advisor should alert you to the issues and provide alternatives to get you back on track.
In addition, the 529 advisor should be reviewing your investment returns with you and discuss if you are on track to meet your goals.
If you are that is great, but if not, the advisor should provide options to help you reach your education savings plan.
Get started today
Contact Us Today
Help Secure Your Child's Future!
Chat with a 529 Advisor
If you have any 529 planning questions or concerns, please feel free to contact us for a free consultation.
You can reach us at 717-288-1880 or visit our contact us page to send an inquiry. We typically respond within 24 business hours.
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Financial Advisor Locations:
Camp Hill, PA Financial Planning Office
York, Pa Financial Planning Office
Harrisburg, PA Financial Planners
Communities Served:
Langan Financial Group, LLC ("Langan Financial Group" or "LFG") is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. LFG may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements.
Important information about our firm is on our Disclosures page. You can review our registration and disciplinary history on the SEC's Investment Adviser Public Disclosure (IAPD) website and, for brokerage registrations, on FINRA's BrokerCheck. This website is for general information only. It is not legal, accounting, or tax advice. Please talk with your own legal or tax professional about your situation. Important information about our firm is on our Disclosures page.
You can review our registration and disciplinary history on the SEC's Investment Adviser Public Disclosure (IAPD), website and, for brokerage registrations, on FINRA's BrokerCheck.
This website is for general information only. It is not legal, professional about your situation.
© Langan Financial Group
Harrisburg, PA Office
Address: 1863 Center St, Camp Hill, Pa 17011
Phone: 717-288-1880
York, PA Office
Address: 3405 Board Rd, Suite 200, York, Pa 17406
Phone: 717-773-4085
