What is an ESA and how is it different from 529 plans?

ESAs are often compared to 529 plans, which are also popular for education savings. While both accounts offer tax advantages, 529 plans typically allow for higher contribution limits and are more focused on college savings, whereas ESAs can be used for K-12 expenses as well. Education Savings Accounts (ESAs) provide a valuable tool for families looking to save for educational expenses, offering flexibility and tax benefits that can help ease the financial burden of education.Funds in these accounts grow tax-deferred and are tax free when withdrawn for K-12 or college education expenses before age 30.