529 Education Savings Plan
Tax-deferred growth, tax-free withdrawals for qualified education. State income-tax deduction in many states. Now also rollable to Roth IRA.
How it works
Contribute after-tax dollars; investments grow tax-deferred; withdrawals for qualified education (tuition, fees, room & board, books, computers, K-12 tuition up to $10k/yr) come out tax-free. Many states give a deduction or credit for in-state plan contributions.
Newer flexibility
Up to $35,000 of unused 529 balances can be rolled to the beneficiary's Roth IRA (subject to annual Roth limits, 15-year account age, and 5-year contribution rule). Removes much of the 'what if my kid doesn't go to college' fear.
Superfunding
You can front-load 5 years of annual gift exclusion in one shot — currently up to $90k single / $180k MFJ per beneficiary — and elect to spread it over 5 years for gift-tax purposes.
Educational only — not tax, legal, or investment advice. Talk through your specific situation with a qualified advisor.