COLLEGE SAVINGS 101

What is a 529 College Savings Plan? (Script)

05/21/2013

QUESTION:
What is a 529 College Savings Plan?

Watch video

ANSWER:
Well in my opinion, a 529 plan is the best college savings program going for a lot of American families. 529 plans are investment accounts offered by the states and they are available to anyone wishing to save for college, whether itís for the traditional four year degree or for an adult planning to take classes at the local community college in the future. Because of a special tax exemption under Internal revenue code section 529, along with state tax breaks and other benefits, 529 plans have become extremely popular, and they now hold more than $200 billion in college savings, spread over 11 million accounts. Nearly every state has a 529 plan and no two 529 plans are exactly the same. In addition to 529 college savings plans, a few states and a group of private colleges offer another type of 529 plan commonly referred to as prepaid tuition plans. You can shop around for the plan that is best for you, because the state you choose to invest in makes no difference in where your child eventually attends college. But be sure to take a look at your own state's 529 plan first because state residents sometimes get extra benefits. To compare different 529 plans, including their investment options and fees and expenses, use our website at savingforcollege.com.

Related: What is a 529 Plan?

Other recent questions

»Top 529 Plan Withdrawal Tips. (Video) (03/30/2017)
»What are the 3 biggest 529 plan myths? (Video) (03/17/2017)
»Does a 529 plan affect financial aid? (Video) (03/16/2017)
»How much does college cost? (Video) (03/15/2017)
»What Are The Top 7 Benefits Of 529 Plans? (Video) (03/14/2017)
»529s and Financial Aid (Video) (11/19/2014)
»What are the best ways to maximize the savings in my 529 plan? (Video) (10/14/2014)
»What are the steps involved in setting up a 529 account? (Video) (09/15/2014)
»What is the first step in getting started with a 529 plan? (Video) (09/05/2014)
»Coverdell ESA vs. 529 Plan: Which to choose? (Video) (07/15/2013)
»What is the best 529 plan for me? (Video) (07/10/2013)
»What happens to my 529 if my child gets a scholarship? (Video) (07/02/2013)
»Can grandparents open a 529? (Video) (06/20/2013)
»Do I have to use my own state's 529 plan? (Video) (06/12/2013)
»529 Plans: Tax Benefits of a 529 Plan (Video) (06/07/2013)
»What are the Pros & Cons of 529 plans? (Video) (05/30/2013)
»What is a 529 College Savings Plan? (Video) (05/21/2013)
»Expected addition to the the family (04/16/2013)
»Naming a successor to your 529 account (Video) (05/11/2012)
»Finding the Right Coverdell ESA (Video) (09/16/2011)
My College Savings

Help us personalize our site for you.

1. I am a ...
Please select an option.
2. My child is ...
Years Old
Please enter the age of your child.
3. I have a 529 plan for this child
Please select an option.
 

Reset email successfully sent.
Please check your inbox.

Close
page loadtime mark

Advertisement


close