529 Plan

A 529 plan (named for the tax code with the same number) is one way you can save money for a child's education. The general idea about 529 plans is this: You can salt away after-tax money into a 529 plan and those funds will grow tax free in the plan as long as you use the funds for approved college expenses. Each state offers different 529 plan options, but you don't necessarily have to invest in the 529 plan for your state. There may be tax benefits for investing in your home state plan, but if the plan is expensive or doesn't offer stellar returns, you may do better by investing in a different state's plan. How do 529 plans work? At what point should you open a 529 plan for a child? And how does the money in a 529 plan get taxed? Learn more about 529 plans from this topic page.

Featured 529 Plan Article

Questions On 529 Savings Plans

Are there tax penalties on a 529 plan if your child doesn't start college by a certain date? Is a 529 plan the best way to save for college? Are contributions to a qualified 529 plan deductible? These questions and more about 529 plans are answered here.

View all ThinkGlink events