529 Prepaid Tuition Plan

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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decides to attend a private college, prepaid tuition credits may be transferred to another child, contributions may be withdrawn, or the in-state value of the prepaid credits may be transferred to an out-of-state or private institution.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.
Search results for

'529 Prepaid Tuition Plan'

  • The Last States With Prepaid Tuition Plans - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0311/The-Last-States-With-Prepaid-Tuition-Plans.aspx
    ... education expenses. Maryland The Maryland Prepaid College Trust is the
    state's section 529 prepaid tuition plan. Benefits under ...

  • A 529 Plan Fit For An Ivy League Education

    http://www.investopedia.com/articles/pf/09/independent-529-college-savings-plan.asp
    ... times, read Paying For College In An Economic Downturn.) Working Within Plan
    Limitations The benefits in a prepaid tuition plan like the Independent 529 can ...

  • Choosing The Right 529 Education Savings Plan

    http://www.investopedia.com/articles/retirement/04/072104.asp
    ... Education.) Two Types of 529 Plans Before choosing a 529 plan, be aware of the two
    major types: the college savings plan and the prepaid tuition program. ...

  • Stop Procrastinating! Enroll In A College Savings Plan

    http://www.investopedia.com/articles/pf/10/enroll-in-college-savings-plan.asp
    ... If a family decides that a 529 savings plan or prepaid tuition plan is right for
    them, it is important to stop procrastinating and get the ball rolling. ...

  • 529 Plans: Types Of Plans | Investopedia

    http://www.investopedia.com/university/retirementplans/529plan/529plan1.asp
    ... Prepaid tuition programs allow for the advance purchase of credits for the designated ...
    The designated beneficiaryunder a 529 plan is the student the plan is ...

  • Spoil Your Grandkids, Cut Your Tax Bill

    http://www.investopedia.com/articles/tax/09/cutting-taxes-with-college-costs.asp
    ... Tax Guide 529 Plans - Qualified Tuition Programs There are two types of qualified
    tuition programs, the college savings plan and the prepaid tuition plan. ...

  • What options do I have to save for my child's education?

    http://www.investopedia.com/ask/answers/09/options-save-childs-education-children.asp
    ... Their Education and Retirement and Choosing the Right Type of 529 Plan ... Prepaid tuition
    plans: With a prepaid tuition plan you pay into an account either managed ...

  • 529 Plans: Eligibility | Investopedia

    http://www.investopedia.com/university/retirementplans/529plan/529plan2.asp
    ... The investment options available under the plan may be ... For prepaid tuition programs,
    the cost per credit may ... Beneficiary Like the ESA, the 529 plan allows the ...

  • College Savings Accounts: US Vs. Canada

    http://www.investopedia.com/articles/younginvestors/09/college-savings-us-canada.asp
    ... When To Switch Your 529 Plan.) Unlike prepaid plans, which guarantee enough money
    to cover future tuition, investments in a college savings plan can fluctuate ...

  • Pay For College Without Selling A Kidney

    http://www.investopedia.com/articles/younginvestors/08/save-money-college-tuition.asp
    ... Type of 529 Plan and Clearing Up Tax Confusion For College Savings Accounts.) Two
    newer items that have come out in recent years are prepaid tuition plans and ...

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