What are the types and benefits of 529 college savings plans?
529 savings plans are an innovative way to invest with the goal of paying the costs of higher education. Named after Section 529 of the Internal Revenue Code, a 529 plan is a tax-advantaged savings vehicle designed specifically for college savers. There are two types of 529 plans: • Savings plans allow participants to pay for tuition, certain room and board expenses, fees, books and supplies at any accredited post-secondary school in the United States; and • Prepaid tuition plans, which allow participants to prepay for college credits based on then current tuition rates, usually covering tuition and fees, and are typically offered for a specific pool of participating post-secondary schools. 529 plans offer the following benefits: • There are no income limits or residency restrictions for account owners; • Assets can be used at any accredited college or university nationwide; • Assets can be used for tuition, room, certain room and board expenses, fees, books and required supplies; • Ea
