Does Washington state offer 529 plans?

The GET program is Washington’s 529 prepaid college tuition plan that helps families with young children save for future higher education expenses. The State of Washington guarantees that the value of your account will keep pace with the cost of college tuition, no matter how much it changes in the future.

How does a 529 plan work Washington?

Under these plans, you contribute after-tax money and your money grows tax-free, and all withdrawals are tax-free, when used for tuition, room and board, and other qualified higher education expenses. There are two types of 529 plans: prepaid tuition plans and education savings plans.

Does Washington state have a 529 tax deduction?

To help you save for your children’s future education, the state of Washington sponsors two 529 plans, a direct-sold option and a prepaid tuition program. Both offer several tax benefits and allow you to contribute up to $500,000—one of the highest maximums for 529 plans nationwide.

Is Washington GET program worth it?

Currently, each GET unit has a payout value of $103.86. Starting Aug. 1, as part of the routine annual GET payout increase, each unit will be worth $106.01. But if a unit is rolled over into DreamAhead, its value rises to $143 — nearly 38 percent more than this year’s payout value.

How do I open a 529 plan for my child?

Step-by-step guide to opening a 529

1. Select a plan. You’ll have to choose between a savings plan or a prepaid plan.
2. Choose a beneficiary. This will likely be your child — but remember, you can change the beneficiary at any time without penalty.
3. Open the account. Most accounts can be opened online.
4. Build your portfolio.

Is the Washington GET program worth it?

What is the max contribution to a 529?

529 plans do not have annual contribution limits. However, contributions to a 529 plan are considered completed gifts for federal tax purposes, and in 2022 up to $16,000 per donor ($15,000 in 2021), per beneficiary qualifies for the annual gift tax exclusion.

Which is Better get or dream ahead?

The difference between GET and DreamAhead is the guaranteed value present in GET. Washington State is taking on the risk, so it’s like an insurance policy. DreamAhead is an investment account, and the value is dependent on the performance of the underlying investments chosen by the account owner, which is you.

What should I look for in a 529 plan?

4 things to look for in a 529 plan

• State tax benefits. First, see what tax breaks your state offers for qualified higher-education expenses.
• Fees & cost. The less you pay in fees and costs, the more you’ll have left to pay for college.
• Investment choices.
• Initial investment amount.