529 College Savings Plan
With tuition costs rising every year, saving for college is a top priority for most families with children. A 529 savings plan, also called a qualified tuition program, allows you to build up savings to pay for qualified higher education at eligible institutions using tax-free dollars. 529 plans were named after a section of the tax code and are offered through states.
How It Works
The 529 savings plans let parents save for qualified college costs free of federal and sometimes state taxes. Qualified costs include room and board, tuition and books. Prepayment may be in the form of a contribution to an account established specifically for paying higher educational expenses.
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