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The 411 on 529's

Monday, August 6, 2018

what is a 529?
A savings account for college expenses that grows tax free.

why should you care about having a 529?

  • College is expensive and kids grow up fast.
  • Every dollar saved is more than a dollar that you won’t have to borrow for college costs.
  • A child is 6x more likely to attend college knowing someone is saving money for them to go.
  • Education pays! Those with a college degree can earn over a million dollars more over a work lifetime than those without.
why Gift of College?

  • It is a smart and timeless gift.
  • It’s clutter free and won’t be outgrown.
  • They’ll love you and thank you forever!
how to start a 529

check out the plan(s) in your state
You’re free to invest in any plan but you’ll want to check your home state plan first for state tax and/or other benefits as you shop around.

investment or prepaid plan
There are two types of 529 plans. Nearly all states offer a 529 savings plan while a few states also offer a 529 pre-paid plan. Both types of plans have the same favorable tax benefits.

529 savings plans are investment plans in which you can choose from a wide range of options to invest your funds. These plans can be used for many types of expenses, from tuition to room and board, to books and supplies, at a wide range of schools around the country and world.

As the name implies, 529 prepaid tuition plans allow you to pre-pay (in a lump sum or installments) future tuition costs (in years, credits or units) by locking in current prices. These plans cover only tuition and sometimes fees, generally only work for in-state public universities and may require the account owner or future student to be a resident of the state where you open the plan.


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