What are 529 College Savings Plans?


A 529 plan  is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs.   It is named after Section §529 of the Internal Revenue Code which created these types of savings plans in 1996.

529 Plans & Financial Aid explanation from Saving For College.com

Must I use my State’s Plan?

Tax benefits of 529 Plans  contributions are not deductible on your federal tax return, your investment grows tax-deferred, and distributions to pay for the beneficiary’s college costs come out federally tax-free.

What does college cost?

College Saving Tutorial

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Consumer Links

Internal Revenue  Code §529   Qualified tuition programs

Publication 970, Tax Benefits for Higher Education (PDF)

Tax Topic 310 — Coverdell Education Savings Accounts

IRS Tax Tip 2007-48 — Offset Education Costs

saving for college.com 529 vs  Coverdell

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