Is the Florida 529 Plan a good choice for Florida residents?

The Florida 529 Savings Plan is solid but not necessarily the best. Florida has no state income tax, so Florida residents don't lose a state tax deduction by using an out-of-state plan. That makes the choice purely about investment options, fees, and plan features. We help families compare Florida's plan against the top out-of-state options.

What's the difference between Florida Prepaid and the Florida 529 Savings Plan?

Florida Prepaid (managed by the Florida Prepaid College Board) lets you pay for future in-state tuition at today's rates. It's essentially insurance against tuition inflation for Florida public schools. The Florida 529 Savings Plan is an investment account: you contribute, the money grows in market-based portfolios, and you withdraw for qualified education expenses. The two can be used together.

Can I use a 529 for K-12 tuition?

Yes. Up to $10,000 per year per beneficiary can be used for K-12 tuition at private and religious schools. State tax treatment varies. For Florida families with no state income tax to lose, the federal benefit (tax-free growth on the withdrawal portion) still applies.

What if my child doesn't use all the 529 money?

Several options: change the beneficiary to another family member, save it for the original beneficiary's graduate school, take a non-qualified withdrawal (pay tax and 10% penalty on earnings), or under SECURE 2.0, roll up to $35,000 over the beneficiary's lifetime into a Roth IRA in their name (subject to annual Roth contribution limits, a 15-year account seasoning rule, and other conditions).

Should grandparents fund a 529 for grandchildren?

Often a good idea, especially after the recent FAFSA changes. Grandparent-owned 529 distributions no longer count against the student's aid eligibility, which removes the main historical reason to avoid them. Grandparent 529s also serve as estate-reduction tools, especially when paired with 5-year accelerated gifting (which lets you front-load up to 5 years of annual exclusion gifts in one year).

Is the Florida 529 Plan a good choice for Florida residents?

The Florida 529 Savings Plan is solid but not necessarily the best. Florida has no state income tax, so Florida residents don't lose a state tax deduction by using an out-of-state plan. That makes the choice purely about investment options, fees, and plan features. We help families compare Florida's plan against the top out-of-state options.

What's the difference between Florida Prepaid and the Florida 529 Savings Plan?

Florida Prepaid (managed by the Florida Prepaid College Board) lets you pay for future in-state tuition at today's rates. It's essentially insurance against tuition inflation for Florida public schools. The Florida 529 Savings Plan is an investment account: you contribute, the money grows in market-based portfolios, and you withdraw for qualified education expenses. The two can be used together.

Can I use a 529 for K-12 tuition?

Yes. Up to $10,000 per year per beneficiary can be used for K-12 tuition at private and religious schools. State tax treatment varies. For Florida families with no state income tax to lose, the federal benefit (tax-free growth on the withdrawal portion) still applies.

What if my child doesn't use all the 529 money?

Several options: change the beneficiary to another family member, save it for the original beneficiary's graduate school, take a non-qualified withdrawal (pay tax and 10% penalty on earnings), or under SECURE 2.0, roll up to $35,000 over the beneficiary's lifetime into a Roth IRA in their name (subject to annual Roth contribution limits, a 15-year account seasoning rule, and other conditions).

Should grandparents fund a 529 for grandchildren?

Often a good idea, especially after the recent FAFSA changes. Grandparent-owned 529 distributions no longer count against the student's aid eligibility, which removes the main historical reason to avoid them. Grandparent 529s also serve as estate-reduction tools, especially when paired with 5-year accelerated gifting (which lets you front-load up to 5 years of annual exclusion gifts in one year).

5/5

529 Plans And College Planning Without Derailing Retirement.

529 plan and college planning that fits your broader plan. Covering Florida Prepaid, custodial accounts, and the funding pace that works for parents and grandparents without compromising retirement.

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Fiduciary CFP®
529 Plan Selection
Multi-State Strategy
Estate-Integrated

WHY CLIENTS CHOOSE US

College planning that doesn't break the retirement plan.

529 plan selection

Florida 529, out-of-state plans with better fund options, age-based portfolios, and the state-tax interaction (Florida residents have flexibility because there's no state income tax to lose by going out-of-state).

Florida Prepaid evaluation

The Florida Prepaid College Plan is unique and worth a real look. We help families decide whether prepaid, 529, or a mix is the right fit.

Grandparent funding strategy

Grandparent 529s, direct tuition payments (outside the gift-tax limit), and the FAFSA timing rule changes that now make grandparent 529 distributions much friendlier.

Retirement comes first

We'll tell you when fully funding college means underfunding retirement. Your kids can borrow for school. You can't borrow for retirement.

Long-term, not transactional

We meet on a real cadence, usually quarterly. The plan flexes as your life and the tax code change. Most relationships span decades.

South Florida-rooted, nationally licensed

Offices in Boca Raton and Plantation, plus licensed in all 50 states. Existing clients keep us when they move.

What we help with.

529 plan selection and setup. Picking the right state plan, the right investment track, and the right beneficiary structure.

Florida Prepaid analysis. Whether Florida Prepaid (a separate program from the Florida 529 Savings Plan) makes sense, and how it integrates with a 529.

Contribution strategy. Annual amounts, 5-year accelerated gifting (frontloading), and how to pace contributions across multiple kids or grandkids.

FAFSA and aid coordination. How 529s, custodial accounts, and grandparent-owned plans affect financial aid eligibility under the current FAFSA rules.

Withdrawal coordination. Tax-free 529 withdrawals for qualified education expenses, the rules around K-12 use, and what to do with leftover balances.

Roth conversion for unused 529. Under SECURE 2.0, unused 529 funds can be rolled to a Roth IRA for the beneficiary (with limits and a 15-year seasoning rule). We coordinate this into the broader plan.

How to think about it.

The right college plan starts with two honest numbers: how much you actually expect to contribute, and how much your retirement plan can give up. Most families overestimate how much they should put toward college and underestimate how much they need for retirement. Aid, scholarships, work, and reasonable borrowing fill some of the gap.

The 529 vs. Florida Prepaid decision is a real one for Florida residents. Prepaid locks in in-state tuition at today's rates. 529 gives you market-rate growth potential and more flexibility for out-of-state schools. For families committed to in-state public schools, Prepaid can be the cleaner answer. For families undecided or aiming for private/out-of-state, a 529 (or a mix) usually fits better.

RELATED SERVICES

Where college planning fits.

College funding is rarely a standalone decision. It connects to:

Full Financial Planning

The hub. Your education savings strategy lives inside your broader cash flow and retirement plan.

See full financial planning →

Estate Planning

Grandparent 529s and direct tuition payments are powerful estate-reduction tools.

See estate planning →

Tax Planning

5-year accelerated gifting, state tax interactions, and the Roth conversion rule for unused 529 balances.

See tax planning →

Who this is for

Common 529 situations.

College planning shows up at different life stages:

What we don't do.

Contact Us Today

We don't lead with proprietary products, structured notes, or non-traded REITs as a portfolio building block. We don't take custody of your assets. We don't promise market-beating returns. The honest answer is that nobody who has to tell the truth to a regulator can.

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No obligation. We respond the same business day.

QUESTIONS, ANSWERED
Common questions about College Planning

The Florida 529 Savings Plan is solid but not necessarily the best. Florida has no state income tax, so Florida residents don't lose a state tax deduction by using an out-of-state plan. That makes the choice purely about investment options, fees, and plan features. We help families compare Florida's plan against the top out-of-state options.
Florida Prepaid (managed by the Florida Prepaid College Board) lets you pay for future in-state tuition at today's rates. It's essentially insurance against tuition inflation for Florida public schools. The Florida 529 Savings Plan is an investment account: you contribute, the money grows in market-based portfolios, and you withdraw for qualified education expenses. The two can be used together.
Yes. Up to $10,000 per year per beneficiary can be used for K-12 tuition at private and religious schools. State tax treatment varies. For Florida families with no state income tax to lose, the federal benefit (tax-free growth on the withdrawal portion) still applies.
Several options: change the beneficiary to another family member, save it for the original beneficiary's graduate school, take a non-qualified withdrawal (pay tax and 10% penalty on earnings), or under SECURE 2.0, roll up to $35,000 over the beneficiary's lifetime into a Roth IRA in their name (subject to annual Roth contribution limits, a 15-year account seasoning rule, and other conditions).
Often a good idea, especially after the recent FAFSA changes. Grandparent-owned 529 distributions no longer count against the student's aid eligibility, which removes the main historical reason to avoid them. Grandparent 529s also serve as estate-reduction tools, especially when paired with 5-year accelerated gifting (which lets you front-load up to 5 years of annual exclusion gifts in one year).

Find Us

Two offices, one team.

Boca Raton (Home Office)

1200 North Federal Highway, Suite 300

Boca Raton, FL 33432

(561) 210-7339

Monday to Friday, 8:30 AM to 4:30 PM ET

Plantation

7901 SW 6th Court, Suite 320

Plantation, FL 33324

(954) 809-3553

Monday to Friday, 8:30 AM to 4:30 PM ET

Serving

South Florida cities and neighborhoods

Palm Beach County

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Ready to talk about College Planning?

The first meeting is a conversation, not a sales pitch. We'll talk about where you are, what you're working through, and whether Intercoastal is the right fit. In person in Boca Raton or Plantation, or by video from anywhere.

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529 Plan & College Planning