529 Accounts Now Available for College Preparation

Most parents are familiar with using a 529 account to cover college tuition and fees. But many don’t realize that 529 education savings plans can also help pay for services like test prep and college counseling—essential tools to give your student a competitive edge in admissions.

What is a 529 Account?

A 529 is a tax-advantaged savings plan that allows you to set aside money for your child’s education. Contributions grow tax-free, and withdrawals are not taxed when used for qualified education expenses. Traditionally, families have used 529 funds for tuition, books, or room and board.

Expanding the Benefits

Today, some 529 plans recognize the value of pre-college services. That means parents can use their savings to invest in programs like Vanguard College Prep’s Test Prep and College Counseling, which directly support their child’s success in the admissions process.

Steps to Use Your 529 for Test Prep and Counseling

1. Open or Review Your Plan – If you don’t already have a 529, start one through your state’s plan or a financial institution. If you already have one, review the details of your existing account.

2. Fund the Account – Parents, grandparents, and even friends can contribute. The earlier you contribute, the more tax-free growth you’ll benefit from.

3. Confirm Eligible Expenses – Contact your plan administrator to confirm whether your 529 covers test prep and counseling services. Rules can vary by state and provider.

4. Pay for Services – When enrolling in Vanguard programs, you can request a withdrawal from your 529 to cover the cost.

5. Save Documentation – Keep invoices and receipts in case you ever need to verify how funds were used.

Why This Matters for Families

Test prep and college counseling are no longer optional extras—they’re essential investments in your student’s future. Using a 529 account makes these services more accessible, allowing you to maximize the savings you’ve already set aside for your child’s education.

At Vanguard College Prep, we see firsthand how this investment pays off: stronger test scores, reduced stress in the admissions process, and better outcomes for college placement.

By: Seaver Chan