You’ve had a strong year. Equipment has been updated, bonuses have been paid, and the business is healthy. But what are you doing for the next generation?
Most people think 529 plans are only for new parents, something you start when a child is born. But the reality is, it’s never too late to put this tool to work.
If you’ve got a child or grandchild approaching high school, headed to college, or enrolled in private school, a 529 can still offer major tax advantages and long-term impact.
You’ve worked hard to build your business. A 529 plan helps you use those profits to build something just as important: options, opportunity, and a financial head start for your family.
What Is a 529 Plan and Why Should You Care?
A 529 plan is a tax-advantaged investment account designed to cover education costs. You put in after-tax dollars, and the money grows tax-deferred. When used for qualified education expenses, withdrawals are entirely tax-free.
That means:
No tax on growth
No tax on withdrawals (if used properly)
Potential state tax deductions (Mississippi allows up to $20,000 for joint filers)
As of 2024, you can now roll unused 529 funds into a Roth IRA for the beneficiary, up to a lifetime cap of $35,000. Even if your child doesn’t use all the money for school, you’ve still given them a considerable head start on retirement. It’s peace of mind with a payoff.
Where Can the Money Go? 529 funds can be used for more than just tuition:
College or vocational school
Books, laptops, and internet access
Room and board
K–12 private school tuition
(up to $10K/year per student)
Apprenticeship programs
Student loan repayment
(up to $10K lifetime)
Private schools may be the only viable education option for many in rural areas or small towns. A 529 can help cover those costs now, not just in the distant future.
Withdrawals for non-qualified expenses are subject to taxes and a 10% penalty on earnings unless there’s a scholarship, disability, or other exception.
What happens if there’s leftover money in the account? You’ve got more flexibility than ever:
You can change the beneficiary to another child, grandchild, or even yourself if you plan to take classes later in life.
Use it for future education, such as graduate school, trade certifications, or professional development.
Rollover to a Roth IRA, provided the account has been open for at least 15 years, contributions qualify under IRS limits, and you haven’t exceeded the $35,000 lifetime cap.
Leave it for future generations. The account can remain open indefinitely and be passed on to a grandchild or great-grandchild.
You’re not locked in. You’re building flexibility and generational impact.
How to Use 529 Plans as a Family Strategy
You don’t have to be a tax expert to make a smart move here. If you lean on your CPA or advisor to help you navigate big financial decisions, a 529 plan is one more tool they can help you put to work.
1
Open a 529 account for your children or grandchildren.
2
Max out the annual contribution ($18,000 in 2024) or use the 5-year “superfunding” strategy ($90,000 per child or $180,000 for couples).
3
Lower your state taxable income if your state allows deductions.
This isn’t thoughtful tax planning; it’s a way to transfer values and show your kids that planning ahead matters. You believe in their future even before they’ve chosen a path.
A Legacy Beyond the Business
Construction work is personal. It’s about building something that lasts, something your kids can point to and say, “My mom or dad helped build that.” A 529 plan is no different.
This plan is about more than dollars and deductions. It’s about giving your children options and removing the burden of debt before they even take their first step into adulthood. And it’s about planting seeds that may grow long after your business days are behind you.
If you’re already planning for your company’s future, take a moment to prepare for your family’s too.
