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529 College Savings Plans
Welcome to the world of
529 college savings plans - a smarter way to save for college while saving taxes. The new tax-free IRS 529 Code is becoming extremely popular for those looking to get the most for their investment dollars while gaining major tax breaks.
Both 529 plans and prepaid tuition plans, (authorized under Section 529 of the federal Internal Revenue Code), are established by individual states. Using these plans, you can make more contributions than any other tax-deferred savings program today.
Prepaid plans let parents lock in today's prices for tuition, room and board by paying these college expenses up front, either in a lump sum or in installments. On the other hand, savings plans let you make monthly or quarterly contributions to an account which the state invests on your behalf.
Both types of plans generally let anyone (a parent, grandparent, relative or friend) set up an account and make contributions, regardless of income. And most states set high ceilings on the amount you can put in -- as much as $200,000 or so in some states.
To view a comparative spreadsheet simply click on one of the links featured below:
529 Plan Overviews
| 529 Plan Resources |
Description |
| 529 Plan Comparisons |
Compare over 30 different plan features for up to 6 different plans at once. |
| 529 Plan Overviews |
Use this section to learn about 529 Plans, see answers to commonly asked 529 questions and get the latest news from the 529 industry. You can take a tutorial to explain 529 Plans and learn about how to save for college most effectively. |
| U-Promise Program |
Online program for college savings. Just register your cards with Upromise, and they will track your spending with many of their participating companies. Then whenever you make a purchase at those companies, you'll get a percentage of your spending back into your Upromise Account - automatically. Your credit card info is protected with strict security precautions. |
| Frequently asked questions |
Answers to the more frequently asked questions about 529 savings plans from the College Savings Plan Network |
| Financial Aid Officer Advice |
Insights on how 529 plans might affect financial aid
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529 Quick Facts & Benefits
- Although contributions aren't tax-deductible, earnings grow
tax-free until the money is withdrawn to pay for tuition or college expenses - and then
it is only taxed at the student's typically tax rate.
- Unlike Education IRAs, annual contributions are not sharply
limited. Maximum contributions can total as much as $235,000.
- They don't have a major impact on financial aid, in contrast
to prepaid tuition plans.
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