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 The funds may be used to meet the student’s educational needs and, after January 2002, the growth may be withdrawn federally tax-free. Most states also allow the assets to be withdrawn tax-free.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

    Saving for College: The Advantages of 529 Plans

    A 529 plan is the most popular way for most families to save for college because it offers flexibility, control and tax advantages.
  2. 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.
  3. Retirement

    4 Smart 529 Plan Alternatives to Consider

    Learn about some alternatives to the popular college-saving 529 plan that may also make sense, such as prepaid tuition plans and Coverdell accounts.
  4. Personal Finance

    Are 529 College Savings Plans Right For You?

    The 529 College Savings Plan may be the most popular of its type, but does it fit your needs?
  5. 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.
  6. Personal Finance

    How to Save for Your Kids’ College Education

    The continuous rising costs of a college education require substantial planning and savings. Starting early is key.
  7. Personal Finance

    Saving for College: 7 Options to Consider

    There are many options choose from when you're looking for the right educational savings plan for your child.
  8. Personal Finance

    The Pros and Cons of 529 College Savings Plans

    Saving for a child's education via a 529 plan has major advantages as well as some complexities.
  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. Taxes

    Maximize Your Tuition Tax Benefits This Year

    To help college students pay their tuition bills and give America that extra push to get an education, the government has come up with a $2,500 tuition tax credit.
Frequently Asked Questions
  1. What is the difference between cost and price?

    Cost is typically the expense incurred for a product or service being sold by a company. Price is the amount a customer is ...
  2. Do stocks have a negative price-to-earnings ratio?

    A stock can have a negative price-to-earnings ratio (P/E). A negative P/E ratio means the company has negative earnings or ...
  3. What are the main advantages of using moving averages (MA)?

    See why moving averages have proven to be advantageous for traders and analysts and useful when applied to price charts and ...
  4. What is the on-balance volume (OBV) formula and how is it calculated?

    Read about the formula and calculation for on-balance volume (OBV), which is a technical indicator showing movements in trading ...
Trading Center