529 Plan


DEFINITION of '529 Plan'

A plan that allows for the prepayment of qualified higher education expenses at eligible educational institutions.

Also known as a "qualified tuition program," or more fully as a "section 529 plan."


The prepayment may be in the form of a contribution to an account established specifically for paying higher educational expenses. There is no income restriction for individuals who want to contribute to a 529 plan; however, because contributions cannot exceed the amount that sufficiently covers the expenses of the beneficiary's qualified higher education, individuals should take care not to over-fund the 529 plan.

  1. 529 Prepaid Tuition Plan

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  2. 529 Savings Plan

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  3. Federal Direct Student Loan Program ...

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  4. Clifford Trust

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  5. Education Loan

    Money borrowed to finance education or school related expenses. ...
  6. Baccalaureate Bond

    A zero-coupon bond issued by certain states to assist families ...
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  1. Can I roll a Traditional IRA into a 529 college account for my grandchild?

    A 529 plan, also known as a "qualified tuition program", is an investment vehicle that allows individuals to save for education ... Read Full Answer >>
  2. What is the annual contribution limit for a 529A account?

    Contributions to a 529A plan are limited up to the annual gift tax exclusion limit, currently $14,000 a year in after-tax ... Read Full Answer >>
  3. Can minors invest in mutual funds?

    A mutual fund can be opened under the name of a minor through a custodial account overseen by a guardian. The custodian holds ... Read Full Answer >>
  4. What are the risks involved in a banker's acceptance?

    College savings accounts are excellent ways to encourage saving for future college costs. Contact your investment professional ... Read Full Answer >>
  5. Who benefits the most from prepaid expenses?

    Prepaid expenses benefit both businesses and individuals. Prepaid expenses are the types of expenses that are bought or paid ... Read Full Answer >>
  6. Can savings from a Roth 401(k) be used for college without penalty?

    With college tuition ever on the rise, many parents look to their retirement savings to assist with university fees. However, ... Read Full Answer >>

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