Section 529 College Savings Plan
Almost every state has at least one 529 plan.
Section 529 college savings plan. There are two types of 529 plans. 529 plans legally known as qualified tuition plans are sponsored by states state agencies or educational institutions and are authorized by section 529 of the internal revenue code. Although 529 plans take their name from section 529 of the federal tax code the plans themselves are administered by the 50 states and district of columbia.
Ir 2018 156 july 30 2018. A 529 plan is a tax advantaged savings account designed to be used for the beneficiary s education expenses. Flexibility use the money in your 529 for a wide range of educational expenses including college expenses k 12 tuition certain apprenticeship costs and even student loan repayments.
A 529 plan is a tax advantaged savings plan designed to encourage saving for future education costs. Understanding 529 plans. A 529 plan is a college savings plan that offers tax and financial aid benefits.
529 plans may also be used to save and invest for k 12 tuition in addition to college costs. Notice 2018 58 pdf addresses a change included in the 2015 protecting americans from tax hikes path act and two changes included in the 2017 tax cuts and. College savings plans and prepaid tuition plans.