529 College Savings Plans At-a-Glance
|What is a 529 plan?||
It is a program that:
|What are the tax benefits?||
There are several tax benefits:
|Where can 529 plan assets be used?||
Any eligible higher education institution in the U.S. and abroad2:
|What can 529 assets be used for?||
Qualified withdrawals include:
|Who can open an account?||
Almost anyone can open a 529 plan account:
|Who controls the assets and withdrawals?||
There is generally an account owner and a beneficiary (the student for whom the account is set up); the account owner maintains control of the account, including:
|How does a 529 plan account work?||The account owner invests in the portfolio(s) of their choice that are offered by the plan, selecting investments that are appropriate for their risk tolerance and the amount of time that they have until the student will be attending college.
The availability of tax or other benefits may be conditioned on meeting certain requirements.
1 Check with your tax advisor for your state's rules.
2 Earnings on non-qualified withdrawals are subject to federal and state income taxes and a 10% federal penalty tax.