A 529 plan may be set up either as a prepaid tuition plan or as a college savings plan. With the prepaid tuition plan the plan locks in a current tuition rate at a specific school. A college cost-savings account may be opened by any adult and the donor does not have to be related to the child. Contributions to a 529 plan are made with after-tax dollars and are allowed to grow tax deferred. The Assets in the account remain under the control of the donor, even after the student reaches the age of majority. The funds may be used to meet the student’s educational needs and, after January 2002, the growth may be withdrawn federally tax-free. Most states also allow the assets to be withdrawn tax-free. There are no income limits for the donors and contribution limits vary from state to state.

Series 62 Tutoring

Keogh Plans (HR-10)

Related Articles
  1. Personal Finance

    Stop Procrastinating! Enroll In A College Savings Plan

    The cost of sending your kids to college could be a serious financial burden - unless you get prepared. Now.
  2. Managing Wealth

    A 529 Plan Fit For An Ivy League Education

    The Independent 529 plan offers a unique investment for those wanting to send their kids to the best colleges in the U.S.
  3. Investing

    Spoil Your Grandkids, Cut Your Tax Bill

    Helping your grandchildren save for college is a way to spoil them and reap some benefits yourself.
  4. Financial Advisor

    Using 529 Plans to Save for College

    Paying for college is no easy feat. Here is a lowdown on 529 plans, the educational savings plans that help families set aside funds for college costs.
  5. Personal Finance

    Avoid These 3 College Tuition Blunders

    Avoid these big financial blunders when trying to save or pay for college.
  6. Personal Finance

    Tips For Going To College As A Mature Student

    Learn the special considerations mature adults need to make when pursuing a post-secondary education.
  7. Insurance

    Should You Have Tuition Refund Insurance?

    A child dropping out of school can mean forfeiting pricey tuition. Find out what protection is available and when it's worth it.
  8. Personal Finance

    Pay For College Without Selling A Kidney

    Save thousands of dollars on tuition with these tricks and little-known programs.
  9. Personal Finance

    Can You Afford College Costs in 18 Years?

    While saving for your children's college education remains a better late than never proposition, starting early ultimately means you'll need to save far less.
  10. Personal Finance

    How to Get Paid to Go to School

    Tuition benefits, grants and scholarships can help you get paid to go to school, and enjoy the payoff from your degree without racking up student debt.
Frequently Asked Questions
  1. When are Beneficiaries of a Will Notified?

    Learn when the beneficiaries of a will must be notified, and understand how this requirement varies depending on whether ...
  2. Why Does Larry Page Pay Himself a $1 Salary?

    Google co-founder Larry Page continues to take an annual salary of only $1 as chief executive officer.
  3. What is Common Stock and Preferred Stock?

    Learn about the differences between common and preferred shares. Explore situations where preferred shares have more favorable ...
  4. Can CareCredit be Used for Family Members?

    Learn more about the available options that CareCredit offers to pay for out-of-pocket medical procedures with little to ...
Trading Center