529 Plans

529 plans, which are named after the IRS code that created them in 1996, are an increasingly popular way to invest for a child’s college education. These state-sponsored plans give anyone who wants to help finance a child’s higher education – whether they be a parent, relative, or friend – the opportunity to open an account and start saving.

529 plans offer significant tax benefits and accounts can be opened with a relatively small amount of money, making saving for college an achievable goal for all.

THERE ARE TWO TYPES OF 529 PLANS

529 Prepaid College Tuition Plans
These plans allow you to prepay all or part of the tuition of an in-state public college as well as some private colleges. These plans are run by the states or educational institutions and essentially give you the opportunity to pre-purchase tuition based on today’s tuition rates.

Read more to get an in-depth picture of the benefits and risks associated with each kind of 529 college savings plan, and to learn how to select the plan that is best given your individual needs.

 

Investments in 529 college savings plans are neither FDIC insured nor guaranteed and may lose some value. Some states offer favorable tax treatment to their residents only if they invest in the state's own plan. Investors should consider before investing whether their or their designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program and should consult their tax advisor.

Please note the plan's disclosure document includes investment objectives, risks, charges, expenses, and other information associated with municipal fund securities that investors should read and consider carefully before investing. Investments in 529 college savings plans are neither FDIC insured nor guaranteed and may lose value. Please note the plan's disclosure document includes details such as investment objectives, risks, charges and expenses, and other information that you should read and consider carefully before investing. You can obtain a copy of the plan document from each 529 plan sponsor.

 

Investing in a 529 College Savings Plan

Investing in a 529 College Savings Plan

Quiz

Calculators

Use these resources to get a better understanding of your college savings, investing and financing options.

 
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