The best magazine
- An account holder -- parent, grandparent or even family friend -- opens an account for the college-bound beneficiary at any age. The money can be used for tuition, fees, room and board, books or anything else that is necessary for school.
- Interest earnings from 529 plans are not subject to tax by the federal government. State benefits vary, with some states also allowing tax-exempt interest.
- There are fees involved in 529 college plans. The amount will depend on what institution is servicing the account, what the balance is and whether there are regular contributions.
- Ownership of a 529 plan could make a difference in calculation of financial aid, especially in the case of parent-owned plans where they are considered by the federal government as parental assets.
- Plans are available through states, educational institutions and banks. The College Savings Plan Network by the National Association of State Treasurers has information on 529 college plans around the country.
What It's Used For
Tax Benefits
Fees
Conflicts
Finding Plans
Source: ...