When it comes to college savings, the tax code is your greatest ally. As we move into 2026, the tax advantages of 529 plans have expanded significantly, transforming them from simple "college buckets" into versatile wealth-building tools for the entire family. Understanding how a Fidelity 529 interacts with both federal and state laws is the key to maximizing every dollar you save. Here is the 2025–2026 breakdown of the tax perks you should know. 1. The "Triple Tax Play" The core of the Fidelity 529’s power lies in its three-layered tax advantage: Tax-Deferred Growth: Unlike a standard brokerage account, you don't pay taxes on capital gains or dividends while your money is in the plan. Federal Tax-Free Withdrawals: When you take money out for "qualified education expenses" (tuition, room and board, books, etc.), you pay $0 in federal income tax on the growth. State Tax-Free Withdrawals: Most states mirror the federal rules, meaning your withdrawal...