What is a 529 Plan?
Named after the Internal Revenue Code that allows for this type of investment, 529s help families save for eligible colleges, universities and vocational/trade schools worldwide (not just in Indiana). In fact, they’ve become one of today’s most popular college saving tools.
Unique 529 advantages
- Tax-deferred investment growth and federal tax-free withdrawals, when used for qualified higher educational expenses1
- Professional investment management
- Flexibility to use for a range of qualified expenses, including tuition, some fees, books, and certain room and board costs
1 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.