What is Tax-Deferred Growth?

Contributions to a 529 plan are made with after-tax dollars, but unlike a traditional savings account, this money is invested and could accumulate earnings over time.

Some investment accounts require you to pay taxes on the earnings (or the growth) of the account, even if you aren't using the funds in the account. Unlike those investment accounts, any account earnings in your Edvest 529 account grow tax-deferred – which simply means that payment of taxes on earnings is postponed – or deferred - until a later date. That means any potential account earnings are reinvested to help your account grow.