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What are the advantages of a 529 plan over a 401k plan?
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The main advantage of a 529 plan over a 401k plan is that it offers more flexibility. With a 529, you can save for college expenses in a variety of ways, such as through prepaid tuition plans or direct contributions to the account. This means that you can use your 529 plan funds for anything related to higher education, including books, supplies, and room and board. Additionally, 529 plans allow you to take withdrawals tax-free when used for qualified educational expenses, whereas 401ks may incur taxes on withdrawals.