Contributions to a 529 plan grow tax-free, and withdrawals are also tax-free when used for qualified education expenses like tuition, fees, books, and room and board. This can add up to more savings for families like yours.
Basics & benefits
Why save with a 529 plan?
When it comes to saving for higher education, the choices don’t have to feel overwhelming. Your Franklin Templeton 529 Plan makes saving for education easy for families. A 529 plan is a powerful tool for saving for education, offering both tax advantages and flexibility.
Tax advantages
Flexibility
A 529 plan isn’t just for traditional four-year colleges. Whether your child dreams of becoming a physical therapist, a journalist, or an engineer, these funds can be used at a variety of educational institutions including two-year colleges, trade schools, and technical programs across the country.
How it works
A 529 plan is as easy as 1-2-3
Saving for your child s future education has never been easier with a Franklin Templeton 529 Plan.
1
Open an account
With a Franklin Templeton Plan, you can save for your child's future education on your terms—starting with as little as $25.
2
Choose an investment option and save regularly
Select from flexible portfolio options according to your investment comfort level or target enrollment year.
3
Withdraw for education expenses when you are ready
Any growth in your account is tax-free, and withdrawals are tax-free when used for qualified education expenses.
This is a hypothetical illustration to represent the effects of compounding assuming an annual rate of return of 7%. It does not reflect an actual investment, investment expenses, or any taxes payable upon withdrawal which would lower the amounts shown. Returns are not guaranteed and may be less than or greater than the amounts illustrated. Source: Franklin Templeton.
Why save early
Get a head start on their future, your way
When saving for college, starting early can make a significant impact on savings. This chart shows two new parents who want to save for college – Liz (the blue line) and John (the yellow line.) While Liz starts investing today, John procrastinates for 5 years. In this example, John ends up with 40% less money than Liz when his child is ready to start college. Starting early can make a difference.
Flexible
Don't worry about life's what ifs
Your Franklin Templeton account has more flexibility than you may realize. Your 529 savings can be used to help pay for college and universities, graduate programs, vocational and trade schools, or an apprenticeship that is registered and certified with the Secretary of Labor.
Regardless of the school, your 529 savings can also be used for a variety of qualified education expenses, including tuition, room & board, books, fees, computers, supplies and more.
