There's a Common Way to Save Up to Send Your Kid to College. It Might Not Work for Us.

529 plans are designed for future education, but they can still be used when college plans are unclear. Funds can be redirected by changing the beneficiary, using money for K-12 expenses, or rolling it over into a retirement account in some situations. Health issues or disability may qualify for waived withdrawal penalties. Money may also be transferable into an ABLE account. The rules can change over time, so checking IRS guidance is important. In general, 529 funds can cover community college and some vocational schools, so a four-year university is not required to use the savings.

"That's what's great about 529 plans-they're meant to save for the future, but because the future is so uncertain, they are options if college isn't on the table. So no need to close the door on anything."

"Depending on your situation down the road, you could change the beneficiary, use the money for K-12 expenses, or in some cases even roll it over into a retirement account. There are some instances in which health issues or a disability might even qualify you to have withdrawal penalties waived. You might even be able to transfer it into an ABLE account."

"All that said, it seems the rules around these types of savings plans are always changing, so I'd bookmark the IRS's 529 page. But in general, 529 plans are pretty flexible and can be used for community college and even some vocational schools. So your daughter doesn't necessarily have to go to a traditional four-year university to use the funds."

Read at Slate Magazine