What is a 529 college savings plan?
Created by section 529 of the Internal Revenue code in 1996, a 529 savings plan is a qualified tuition program designed specifically to save for college. Tax-deferred growth on earnings and federal income tax-free distributions1 set 529 savings plans apart from other investment vehicles used to save for college.
Inside College Savings
Saving for college is challenging, and with so many options, finding the right savings vehicle is crucial for your loved one.
In addition to 529 plans, college savings alternatives include Coverdell education savings accounts, UGMA/UTMA accounts, Series EE and Series I Savings Bonds, and taxable investment accounts.
While each of these savings strategies has its own distinctive features, there are benefits offered by 529 plans that exceed these alternatives.