529 College Savings Plan: Basics

What is a 529 College Savings Plan?

A 529 college savings plan is an investment plan, sponsored by a state, that helps families save for higher education expenses. Savings in a 529 college savings plan grow tax free and withdrawals are income tax free when used for qualified education expenses.

What can I use my 529 College Savings Plan for?

Savings from a 529 college savings plan can be used at virtually any accredited college, university and most trade schools in the country.  Your savings can be used to pay for a variety of college expenses, including tuition, fees, room, board, books, supplies and required equipment.

Ways to save in a 529 College Savings Plan

Many 529 college savings plans allow you to open an account with as little as $25.  529 plans will also allow you to make monthly systemic contributions from your bank account, add additional gifts from family and friends as well as accept automatic cash back reward contributions from Upromise.

Link a 529 College Savings Plan today and earn $25

Why Save for College with a 529 College Savings Plan?

529 college savings plans are designed exclusively to help families
save money for their child’s education.  529 college savings plans
have a long list of benefits.  A few of the most noteworthy are listed
below.

Tax Benefits

529 plans offer exceptional tax advantages. Earnings in a 529 plan
grow tax-free and withdrawals are income tax-free when used to pay
for qualified education expenses, including college tuition, fees,
books, supplies, room and board. Some states offer a state income

tax deduction or state income tax credit for 529 plan contributions.

Simplified Investment Options

529 college savings plans offer simplified investment options that
automatically adjust as the child gets older.  529 plan accounts can
be opened online or through a financial advisor.

Control

Another benefit of using a 529 college savings plan is that the owner,
usually a parent, has control of the funds. The account owner can
ensure the money is used for its intended purpose.

Ways to save in a 529 College Savings Plan

Many 529 college savings plans allow you to open an account with as
little as $25.  529 plans will also allow you to make monthly systemic
contributions from your bank account, add additional gifts from family
and friends as well as accept automatic cash back reward
contributions from Upromise.

Link a 529 College Savings Plan today and earn $25

List of State 529 Plans

Check out these College Savings: 529 Plan Basics by State

Related Articles:

• Rhode Island 529 Plan Basics
• Pennsylvania 529 Plan Basics
• New Mexico 529 Plan Basics
• Maine 529 Plan Basics
• Alabama 529 Plan Basics
• Delaware 529 Plan Basics
• South Dakota 529 Plan Basics
• Oregon 529 Plan Basics
• Delaware 529 Plan Basics
• Connecticut 529 Plan Basics
• Illinois 529 Plan Basics
• New Jersey 529 Plan Basics