Funds in 529 savings plans can be used at virtually any accredited college or university in the U.S. and at some foreign schools. See eligible institutions at www.fafsa.ed.gov.
Earnings from 529 plans are not taxed when used to pay for qualified higher education college expenses.
The account owner of a 529 plan maintains control over the use of the account.
Some states offer matching grants and other benefits to participants in their 529 plans.
Your 529 plan contribution qualifies for the $15,000 per beneficiary annual gift tax exclusion ($30,000 for a married couple).
There are two varieties of 529 plans: college savings plans and prepaid tuition plans.
Savings in a 529 plan can be used to pay qualified higher education expenses such as tuition, room and board, fees, books, supplies, and equipment required for enrollment.
Many states offer a state income tax deduction or credit based on contributions into a 529 plan.
There are no income limitations on a person’s ability to contribute to an account.
You can participate in almost any 529 plan across the country, no matter what state you live in.
Minimum contributions can be as little as $10.
In most states, you can contribute as much as $300,000 or more per beneficiary.
Prepaid plans are currently offered by 11 states and 1 not-for-profit organization.
More than $300 billion is invested in 529 plans across the country.
More than 13.6 million 529 accounts are open nationally
Information provided by College Savings Plan Network and College Savings Foundation has been referenced on this page. To visit their websites go to:
College Savings Plan Network: https://collegesavings.org
College Savings Foundation: https://www.collegesavingsfoundation.org/