529 Plans: Conclusion
AAA
  1. 529 Plans: Introduction
  2. 529 Plans: Types Of Plans
  3. 529 Plans: Eligibility
  4. 529 Plans: Contributions
  5. 529 Plans: Distributions
  6. 529 Plans: Conclusion
529 Plans: Conclusion

529 Plans: Conclusion

By Denise Appleby

Similar to the education savings account (ESA), the 529 plan is an excellent way to save for education expenses.

Let's recap:

  • 529 plans allow for the prepayment of qualified higher-education expenses at eligible educational institutions.
  • There are no income restrictions for individuals who want to contribute to a 529 plan; however, because contributions cannot be more than the amount necessary to provide for the qualified higher-education expenses of the beneficiary, individuals should take care not to contribute too much to the 529 plan.
  • An individual may contribute up to $14,000 each year to a designated beneficiary's 529 plan without incurring federal gift tax, provided that the individual makes no additional gifts to that designated beneficiary for the year.
  • The distribution from the 529 plan may be used for:
    • tuition and fees
    • books, supplies and equipment
    • academic tutoring
    • room and board
    • uniforms
    • transportation

Materials on each State's 529 plan are available from the College Savings Plans Network's (CSPN) website at www.collegesavings.org.


  1. 529 Plans: Introduction
  2. 529 Plans: Types Of Plans
  3. 529 Plans: Eligibility
  4. 529 Plans: Contributions
  5. 529 Plans: Distributions
  6. 529 Plans: Conclusion
529 Plans: Conclusion
RELATED TERMS
  1. Free Application For Federal Student Aid - FAFSA

    The form that must be completed in order to qualify for any type ...
  2. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
  3. Student Loan Forgiveness

    Under certain circumstances, federally backed student loans – ...
  4. Direct Consolidation Loan

    A loan that combines two or more federal education loans into ...
  5. Post-9/11 GI Bill

    A United States law that provides benefits to military veterans ...
  6. G.I. Bill

    The informal name of a United States law that gives military ...
  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 ...
  2. Can 529 plans be used to transfer wealth to other family members if the original ...

    Yes, the 529 plan (also known as a "qualified tuition program") allows you to distribute and roll over funds from one 529 ...
  3. My daughter would like to use some of her Roth IRA to pay for some current tuition ...

    This is a surprisingly complicated question, as it touches on the differences between traditional and Roth IRAs, as well ...
  4. Which transactions affect the retained earnings statement?

    Retained earnings are the portion of a company's income that management retains for internal operations instead of paying ...
comments powered by Disqus
Related Tutorials
  1. All About Student Loans
    Credit & Loans

    All About Student Loans

  2. Education Savings Account Tutorial
    Taxes

    Education Savings Account Tutorial

Trading Center