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What are the Different Types of 529 Plan?
There are 2 categories of 529 plans, Savings Plans and Prepaid Plans.
Savings Plans work much like a 401K or IRA by investing your contributions in mutual funds or similar investments. The plan will offer you several investment options from which to choose. Your account will go up or down in value based on the performance of the particular option you select.
Savings plans are either Broker Sold or Direct Sold.
Prepaid Plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Private College 529 Plan is a separate prepaid plan for private colleges.
There are 2 types of Prepaid Plans: Contract Plans and Unit Plans.