About the episode
In this episode, Martha Kortiak Mert, Chief Operating Officer at Saving for College, breaks down everything families need to know about 529 plans, starting with why getting started early matters more than finding the "perfect" plan. Martha tackles common misconceptions head-on, including the myth that families must use their own state's plan, the confusion around prepaid tuition plans, and the financial aid impact of 529 savings on the FAFSA. She also explains why families get stuck in analysis paralysis, both before opening an account and when choosing investments, and why age-based portfolios are often the simplest, most stress-free option for parents who don't want to actively manage their child's account.
Martha then walks through what to actually look for when choosing a 529 plan, from state tax deductions to performance history and convenience, while reinforcing that no single decision is permanent since funds can be rolled over or beneficiaries changed at any time. She highlights just how flexible 529 funds have become, covering K-12 expenses, vocational and apprenticeship programs, graduate school, student loan repayment, and even rollovers into a Roth IRA.