Whether a prepaid tuition or a college savings plan, a 529 plan may be used for education-related expenses at all accredited colleges and universities. Any person, married or single, relative or non-relative can easily contribute. Plan details differ from state to state. This versatile solution lets you choose from multiple strategies to create a solution that works for your unique needs.
- Sponsored by individual states in most cases1,2
- Can be used to gift assets
- Can be used to pay for tuition, room and board, and any other qualified expenses at accredited colleges2
- Account owner maintains control, even after a beneficiary turns 182
- Earnings in the plan are free from federal tax2
- Qualified withdrawals are free from federal tax and may be exempt from state tax2
- Contributions may be free from federal gift taxes for the contributor2