529 Prepaid Tuition Plan

Dictionary Says

Definition of '529 Prepaid Tuition Plan'

A tax-advantaged method for paying future college tuition costs at current prices. 529 prepaid tuition plans are authorized by Section 529 of the Internal Revenue Code and allow the account holder to purchase tuition credits at their present price even though they will not be used until a future year, when tuition costs will have most likely increased. Plans are state sponsored and only available in some states, but it is possible to participate in a prepaid tuition plan outside of the account holder’s current state of residence.
Investopedia Says

Investopedia explains '529 Prepaid Tuition Plan'

If the child who is the account beneficiary dies, decides not to attend college, decides to attend college in a state other than the one in which the plan was established or decides to attend a private college, prepaid tuition credits may be transferred to another child, contributions may be withdrawn, or the in-state value of the prepaid credits may be transferred to an out-of-state or private institution. Parents, relatives and friends are all allowed to contribute to the child’s account, which can be especially helpful to grandparents who want to give money to their grandchildren in a tax-friendly way.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. 529 Plan

    A plan that ...
  2. 529 Savings Plan

    A tax-advantaged ...
  3. Qualified Higher Education Expense

    Expenses such as ...
  4. Lifetime Learning Credit

    A provision of ...
  5. Full-Time Student

    A status that is ...
  6. Education IRA

    A savings plan ...
  7. Coverdell Education Savings Account ...

    A tax-deferred ...
  8. Twinternship

    An internship in ...
  9. Average Age Of Inventory

    The average ...
  10. London Business School

    A school of ...

Articles Of Interest

  1. Choosing The Right 529 Education Savings Plan

    Before you fund one of these education-savings vehicles, be sure you know their differences.
  2. Don't Forget The Kids: Save For Their Education And Retirement

    Retirement and education financing are the two most important planning items for taxpayers.
  3. Investing In Your Child's Education

    Overwhelmed by increasing tuition costs for your kids? The U.S. government can help.
  4. Pay For A College Education With Retirement Funds

    These savings vehicles may be better than college saving funds for some families.
  5. How And When To Switch Your 529 Plan

    Just as with any investment, you should review your plan to make sure it's meeting your needs.
  6. 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.
  7. 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.
  8. Balance Work And Grad School

    The advantages enjoyed by successful work-study participants are well worth the time and effort exerted.
  9. The Impact Unpaid Internships Have On The Labor Market

    The dramatic increase in unpaid internships has given rise to favorable and unfavorable arguments based on their impact on the students/interns, the labor force and the economy as a whole.
  10. 5 Ways To Fund A College Education

    You can go to college without going broke, but it may take an unconventional approach.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center