#3 Adding to a 529 account!

It may not be something that you have on your radar, but those 529 college savings plans could end up helping you save on taxes! Sure, you may not end up going to college, but it can always be a nice and happy surprise to help a nephew or niece with their college funds. And when you add in the fact that you will be able to save money on taxes, it becomes a nicely wrapped package!

Contributions to 529 accounts are made with after-tax money, but when you invest, the earnings are tax-deferred. Not to mention, there is no tax added on money that is used for educational expenses, so those contributions will not end up being taxed. What’s more, there is a chance that your contributions to a 529 may be eligible for tax credits or deductions at the state level!