One of the best tools available to help you give the gift of a college education is a 529 college savings plan. 529 plans were established to help people save money for students' post-secondary or higher education that can be used at eligible schools across the country. (The name "529" refers to the Internal Revenue Code section that allows the establishment of this type of college saving investment vehicle.)
With the many attractive features and benefits they offer, 529 plans have become one of the most popular ways to save for college. For example, a 529 plan lets you take advantage of:
- Tax advantages: Tax-deferred investment growth and federal tax-free withdrawals when used for qualified higher educational expenses*
- Expertise: Professional investment management
- Flexibility: Use at eligible institutions around the country and for a range of qualified expenses including tuition, some fees, books, and certain room and board costs
Most importantly, a 529 can offer you the peace of mind that you are planning ahead to help a child have a more successful, brighter future
* Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.